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Diaz v. Manufacturers Hanover Trust Co.

New York Supreme Court for Queens County
401 N.Y.S.2d 952 (1977)


Diaz (plaintiff) posted security for a bond on behalf of a defendant in a criminal proceeding. The proceeding concluded, and the funds were returned to Diaz, using two certified checks, one for $12,000 and one for $25,000. The checks were drawn on Manufacturers Hanover Trust Company (Hanover) (defendant). The checks were subsequently lost, misplaced, or stolen. Hanover was notified to stop payment on the certified checks, and the checks were not presented for payment. Diaz requested replacement checks, but Hanover refused to re-issue the checks unless an indemnity bond was posted in twice the amount of the original checks. Diaz sued Hanover to require payment of the original checks without having to post the indemnity bond.

Rule of Law


Holding and Reasoning (Rodell, J.)

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