A divided Appellate Division, Second Department, panel ruled a bank had presented an issue of fact as to whether it had properly debited a customer’s checking account for $50,000 based on a phone authorization the customer denied ever giving.
The 3-1 ruling in Proactive Dealer Services v. TD Bank, 3053/10 Wednesday held that a bank officer’s affidavit saying the customer had expressly authorized the transfer was sufficient to overcome the strict liability a bank assumes under UCC 1-201(41) when it debits an account without the authentic signature of the customer on the check.
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