CONTRACTS - ASSIGNMENTS - SUFFICIENCY OF NOTICE TO A BANK OF THE ASSIGNMENT OF AN ACCOUNT

Authors

Michigan Law Review, University of Michigan Law School

Abstract

On March 25, 1933 an account in D Bank was assigned to P. A week later the bank received from P a formal statement of the assignment, which the bank totally ignored for nine months. In the meantime the bank debited the account for the price of thirty shares of its stock which the depositor-assignor bought in October. On January 2, 1934, D Bank acknowledged receipt of the letter of notice, but denied any liability to P thereunder. In a suit brought by P for the account, the only question was the right of D Bank to take the price of the stock from the account after notice of the assignment. Held, with three judges dissenting, that the bank was under no obligation to recognize any interest of P in the account until the original of the assignment was voluntarily presented as notice of the claim thereunder. Gibraltar Realty Corp. v. Mount Vernon Trust Co., 276 N. Y. 353, 12 N. E. (2d) 438 (1938).

Recommended Citation

Michigan Law Review, CONTRACTS - ASSIGNMENTS - SUFFICIENCY OF NOTICE TO A BANK OF THE ASSIGNMENT OF AN ACCOUNT, 36 Mich. L. Rev. 1195 (1938).
Available at: https://repository.law.umich.edu/mlr/vol36/iss7/12