131 N.Y.S. 105 | City of New York Municipal Court | 1911
This action is brought to recover the proceeds of a check deposited with the defendant to the personal account of plaintiffs’ manager upon the theory of defendant’s failure to make reasonable inquiry to ascertain whether the manager had authority to indorse the firm name and make deposit of the check to his own personal credit and account. The plaintiffs were copartners in business and employed one Munzer as a resident manag’er of their business in the city of Mew York. The evidence shows that Munzer betrayed his employers, the plaintiffs, and is to-day a prisoner confined in the penitentiary on Blackwell’s island. The case was tried by the court upon consent of counsel without a jury, and at the conclusion of the trial both sides moved for a direction of a verdict, which motions are now before the court for its determination. The facts in the case are substantially undisputed, and upon these facts must be drawn the conclusions of law as to the liability or non-liability of the defendant’s bank. On or about June 27, 1910, the firm of M. Philipsborn Company, of Chicago, 111., sent in due course of business its check to the plaintiffs for the sum of $996.62, payable to the order of the plaintiffs in this action. Upon receipt of the check the manager, Munzer, indorsed the check as follows: “ E. A. Buckley & Co., Henry Munzer, manager,” and underneath followed his own indorsement, “ Henry Munzer.” The manager then deposited the check to his own personal account in the defendant’s bank and received credit therefor. The manager, Munzer, had opened a personal account with the defendant’s institution on June 6, 1910, with a deposit of $400 in cash. He thereafter made three deposits, including the check in suit, and closed his account with defendant July 28,1910. One of the three deposits mentioned other than the check in suit was a check made to the order of the United
Judgment for defendant.