Insurance Co. of Pennsylvania v. Citibank

OPINION OF THE COURT

Smith, J.

The issues here are (1) whether summary judgment should be granted to the assignee of the drawer of a check against a depositary bank ("the first bank to which an item is transferred for collection”, see, UCC 4-105 [a]), or (2) whether summary judgment should be granted to the depositary bank against the assignee of the drawer of a check or (3) whether factual issues preclude summary judgment to either. We conclude that summary judgment should be granted to the depositary bank.

This action grows out of an embezzlement scheme perpetrated by Cheryl Callwood, an…