34 A.D.2d 1016 | N.Y. App. Div. | 1970
In an action by a bank to recover upon a check against which it made a payment to the payee, plaintiff appeals from a judgment of the Supreme Court, Nassau County, entered February 19, 1970 in favor of defendant Robert Zawada (the maker), upon the decision of the trial court granting Zawada’s motion to dismiss the complaint and denying plaintiff’s motion for a directed verdict, upon a jury trial, after the close of the entire case. Judgment reversed, on the law, with costs, and judgment directed to be entered in favor of plaintiff against defendant Zawada for $4,592.96 plus interest from September 18, 1968 and costs and disbursements. The sole issue on this appeal is whether a depositary bank may achieve the status of a holder in due course of negotiable paper deposited with it by its customer. The facts are not in dispute. Defendant Zawada issued his cheek in the amount of $5,000, which represented payment for the purchase of an auto