Opinion
Argued January 17, 1962
Decided April 5, 1962
Appeal from the Appellate Division of the Supreme Court in the First Judicial Department, GEORGE STARKE, J.
Gilson B. Gray, III, Chauncey B. Garver and Herman E. Compter for appellant.
George Popkin for respondent.
The weight of authority holds that when a bank pays a check after and despite receiving a stop-payment order from its depositor it cannot recover on the check from the payee of the check (see National Commercial Bank Trust Co. v. Madison, 270 App. Div. 437; Matter of Rousos, 195 Misc. 959; Michie, Banks and Banking, Vol. 5A, p. 549; 5 N.Y. Jur., Banks and Trust Companies, § 398; 39 A.L.R. 1240). The same rule should apply with equal or greater force when the bank in payment of the check has issued its own cashier's check to the holder.
The judgment should be affirmed, with costs.
Chief Judge DESMOND and Judges DYE, FULD, FROESSEL, VAN VOORHIS, BURKE and FOSTER concur.
Judgment affirmed.