Legal Opinion
Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Chemical Bank
New York Court of Appeals
Decided November 18, 1982PublishedCited by 52 opinions
1Opinion of the Court
OPINION OF THE COURT
Fuchsberg, J.
This appeal requires us to explore the extent to which, if at all, immunity from liability accorded a drawee bank by section 3-405 (subd [1], par [c]) of the Uniform Commercial Code may be limited by the drawee’s negligence in paying checks over forged indorsements.
The section at issue, commonly referred to in commercial circles as either the “fictitious payee” or “padded payroll” rule, provides: “An indorsement by any person in the name of a named payee is effective if * * * an agent or employee of the maker or drawer has supplied him with the name of the…
2Cases cited6 opinions
- Underpinning & Foundation Constructors, Inc. v. Chase Manhattan Bank, N.A.New York Court of Appeals · 1979
- David Graubart, Inc. v. Bank Leumi Trust Co.New York Court of Appeals · 1979
- Brigham v. McCabeNew York Court of Appeals · 1967
- Prudential Ins. Co. v. Marine Nat. Exch. Bk. of MilwaukeeDistrict Court, E.D. Wisconsin · 1974
- Fair Park National Bank v. Southwestern Investment Co.Court of Appeals of Texas · 1976
1 more not listed; retrieve them via the Exa API.
3Cited by52 opinions
- McAdam v. Dean Witter Reynolds, Inc.Court of Appeals for the Third Circuit · 1990
- Prudential-Bache Securities, Inc. v. Citibank, N. A.New York Court of Appeals · 1989
- Hartford Accident & Indemnity Co. v. American Express Co.New York Court of Appeals · 1989
- Tevdorachvili v. Chase Manhattan BankDistrict Court, E.D. New York · 2000
- General Accident Insurance v. Fidelity & Deposit Co.District Court, E.D. Pennsylvania · 1984
47 more not listed; retrieve them via the Exa API.