New York Court of Appeals

Lawyers’ Fund for Client Protection of the State of New York, Appellant v. Bank Leumi Trust Company of New York Et…

February 22, 200094 N.Y.2d 398

Summary

The Court held that the Lawyers’ Fund for Client Protection may recover the full $47,500 face amount of the forged check, together with interest, under UCC 3-419(2) and the Fund’s subrogation agreement, and rejected the Fund’s claim for a 22% collection fee. The decision also affirmed the lower court’s summary judgment against Progressive and remanded for further proceedings.