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Illuminations by Arnold v. Puerto Rico

Appellate Division of the Supreme Court of New York, Second Department
May 5, 2003
305 A.D.2d 372 (N.Y. App. Div. 2003)

Opinion

2002-03853

Argued April 4, 2003.

May 5, 2003.

In an action, inter alia, to recover damages for negligent and improper payment of checks, the plaintiff appeals from so much of an order of the Supreme Court, Kings County (Dabiri, J.), dated March 27, 2002, as granted the motion of the defendant Island Check Cashing Corp., to dismiss the complaint insofar as asserted against it.

Abrams, Fensterman, Fensterman, Flowers Eisman, LLP, Lake Success, N.Y. (Keith J. Singer of counsel), for appellant.

Alan D. Handler, Syosset, N.Y., for respondent.

Before: FRED T. SANTUCCI, J.P., DANIEL F. LUCIANO, SANDRA L. TOWNES, REINALDO E. RIVERA, JJ.


DECISION ORDER

ORDERED that the order is affirmed insofar as appealed from, with costs.

The Supreme Court properly granted the motion of the defendant Island Check Cashing Corp. (hereinafter Island) to dismiss the complaint insofar as asserted against it, on the ground that the plaintiff failed to state a cause of action sounding in negligence against Island.

Even if there was a duty owed to the plaintiff by Island based on the cashing of the subject checks, UCC 3-405(1)(c), the "fictitious payee rule," bars any claim alleging negligence against Island since the indorsements on the subject checks were effective and there was no evidence of bad faith on the part of Island in cashing them (see UCC 3-405[b]; Guardian Life Ins. Co. of Am. v. Chemical Bank, 94 N.Y.2d 418; Getty Petroleum Corp. v. American Express Travel Related Servs. Co., 90 N.Y.2d 322).

The plaintiff's remaining contentions are without merit.

SANTUCCI, J.P., LUCIANO, TOWNES and RIVERA, JJ., concur.


Summaries of

Illuminations by Arnold v. Puerto Rico

Appellate Division of the Supreme Court of New York, Second Department
May 5, 2003
305 A.D.2d 372 (N.Y. App. Div. 2003)
Case details for

Illuminations by Arnold v. Puerto Rico

Case Details

Full title:ILLUMINATIONS BY ARNOLD, INC., appellant, v. BANCO POPULAR DE PUERTO RICO…

Court:Appellate Division of the Supreme Court of New York, Second Department

Date published: May 5, 2003

Citations

305 A.D.2d 372 (N.Y. App. Div. 2003)
757 N.Y.S.2d 900