E. Moch Co. v. Security Bank

Headnote

Moch Co. v. Security Bank of New York, 176 App. Div. 842 , affirmed.

Appeal from a judgment of the Appellate Division of the Supreme Court in the first judicial department, entered February 14, 1917, affirming a judgment in favor of plaintiff entered upon a verdict directed by the court. The action was to recover the proceeds of twenty-two checks drawn to the order of plaintiff, it being alleged that Eugene Moch, who was president of plaintiff company, received each check and without authority indorsed thereon “ E. Moch Company ” and thereunder “ Eugene Moch ” and thereafter deposited the checks to his personal account in the Fourteenth Street Bank; that said bank accepted the checks and placed the same to the credit of Eugene Moch’s personal account; that said bank applied the proceeds of the checks in payment of checks drawn against said proceeds by Eugene Moch personally and thereby misappropriated the proceeds thereof to the personal use of Eugene Moch; that this application of the proceeds of said checks was without authority; and that the said Fourteenth Street Bank accepted and collected said checks with notice that the said checks and the proceeds thereof were the property of the plaintiff and with notice, putting it upon inquiry which it failed to make, which would have disclosed that the same was placed to the personal credit and account of Eugene Moch and collected, and the proceeds thereof withdrawn, paid and appropriated for the personal use of said Eugene Moch, without authority. The defenses were that the plaintiff had released Eugene Moch from all liability in connection with the checks; that the plaintiff had ratified and confirmed the transactions of Eugene Moch in connection with said checks; that Eugene Moch paid the proceeds of the checks to the

plaintiff and "that the defendant had paid the proceeds of the checks to the plaintiff.