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Advanced Alloys, Inc. v. Sergeant Steel Corp.

79 Misc. 2d 149 Court Supreme Court, Appellate Term, Second Department, Decision date 1973-07-19 English

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p. 149
Advanced Alloys, Inc., Appellant, v. Sergeant Steel Corporation et al., Respondents.
Supreme Court, Appellate Term, Second Department,
July 19, 1973.
Ira L. Levinson for appellant.
Matthew F. Donohue and Joseph V. Hamilton, Jr., for Chase Manhattan Bank, N. A., respondent.

Memorandum. Order unanimously reversed, with $10 costs to abide the event, and motion for summary judgment denied.

While section A-404 of the Uniform Commercial Code protects a bank which pays a stale check so long as it acts in good faith, it does not eliminate the requirement of ordinary care which a bank must observe in all its dealings (Granite Equip. Leasing Corp. v. Hempstead Bank, 68 Misc 2d 350 ; see, also, Novak v. Greater N. Y. Sav. Bank, 30 N Y 2d 136 ). In our opinion, there is an issue of fact as to whether, under all the circumstances, defendant Chase Manhattan Bank, N. A., acted with due care in this transaction. On a prior motion by the plaintiff, the defendant Chase Manhattan Bank urged that there were questions of fact requiring a full plenary trial.

Concur — G-roat, P. J., Margett and Rinaldi, JJ.

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