New York Court of Appeals
Merrill Lynch, Pierce, Fenner & Smith, Incorporated, Respondent v. Chemical Bank, Appellant. (And a Third-Party…
November 18, 198257 N.Y.2d 439
Summary
The New York Court of Appeals reversed the Appellate Division and granted Chemical Bank's motion for partial summary judgment, holding that UCC § 3‑405 does not shield a drawee bank from liability when the bank is negligent in paying checks over forged endorsements. The Court also answered the certified question in the negative.