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BOWLING CORP. PLAINVIEW v. LONG ISLAND NATIONAL BANK (07/30/68)

DISTRICT COURT OF NEW YORK, FOURTH DISTRICT, NASSAU COUNTY 1968.NY.42759 <http://www.versuslaw.com>; 292 N.Y.S.2d 562; 57 Misc. 2d 337 July 30, 1968 BOWLING CORP. OF PLAINVIEW, PLAINTIFF,v.LONG ISLAND NATIONAL BANK, DEFENDANT Ruben A. Dankoff for plaintiff. Weeks & Corn for defendant. I. Stanley Rosenthal, J. Author: Rosenthal


I. Stanley Rosenthal, J.

Author: Rosenthal

 Plaintiff instituted this action for conversion. Plaintiff's case was predicated upon the testimony of its night manager who testified that in the early morning of October 11, 1967, following the closing of the bowling alley of which he was night manager, located at 500 Old Bethpage Road, Plainview, New York, he drove to the defendant's branch bank located on Manetto Hill Road, in Plainview, and placed a depository bag No. 159 furnished by the defendant into the defendant's night depository. He testified that he had previously checked the contents of the bag with the deposit slips enclosed therewith and that the sum of $1,199.27 in cash was deposited along with the sum of $199.74 in checks, making a total of $1,399.01, deposited in the night depository. The deposits aforesaid had been checked by plaintiff's manager against the deposit slips and found to tally correctly at the time that the plaintiff's manager placed the aforesaid cash and check items in the depository bag, which he testified he placed into the defendant's night depository. It is undisputed that the plaintiff's account was never credited for the deposit although demand had been made. Subsequently, plaintiff succeeded in getting duplicate checks, which reduced the amount for which judgment is being sought herein to the sum of $1,244.36. Mr. Nastvogel could not recall whether he was accompanied by anyone at the time that he deposited the bag into the defendant's night depository.

The testimony adduced on behalf of the defendant disclosed the procedure followed by it each morning in connection with the opening of the night depository vault and the crediting of the various accounts upon receipts of the deposits, which was followed on the morning of October 11, 1967. That on the morning after the alleged deposit both the manager of the defendant's bank and the head teller removed the contents of the night depository vault as soon as the main vault was opened and the security signal had been registered. The procedure that was followed was that the manager had the combination to the night depository which had to be used in conjunction with a key in the possession of the head teller. It was impossible for any one individual to open the night depository. After the night depository was opened, all bags found in the depository were listed on a card devised and used for that purpose with a date, and signed for by both officers. The card was admitted in evidence as defendant's Exhibit D.

Testimony on the part of the defendant disclosed that it had never received the depository bag containing the moneys involved herein. Introduced into evidence were the night depository service agreement dated October 21, 1963, (defendant's Exhibit A in evidence), Defendant's Exhibit B in evidence consisting of a night depository service agreement likewise dated October 21, 1963, and Defendant's Exhibit C in evidence consisting of a resolution adopted by the corporate plaintiff in connection with its use of the night depository safe of the defendant bank.

New York Jurisprudence (vol. 5, Banks and Trust Companies, § 209): "While money on deposit in a bank is commonly considered to be property of the depositor, the relationship in fact between him and the bank is that of debtor and creditor * * * The money deposited with the bank belongs to the bank and is not the property of the depositor. * * * Again, the relationship of a bank to a depositor is that of debtor and creditor and not that of a bailor and bailee".

New York Jurisprudence (vol. 5, Banks and Trust Companies, § 214): "However, the view has been taken, particularly as to night deposits, that the relation of debtor and creditor between the bank and the depositor does not arise until the official crediting of the deposit to the customer's account in the regular banking hours. In the meantime, the bank is a mere bailee. It has been held that the bank may be held liable as a bailee for the negligent loss of a night deposit, in the absence of a contract placing the risk upon the depositor."

New York Jurisprudence (vol. 5, Banks and Trust Companies, § 262): "the general rule of bailments, that when a bailee exercises that degree of care and diligence required by law of his class of bailees, he is discharged of liability, although the thing bailed is lost, destroyed, or stolen, is fully applicable".

New York Jurisprudence (vol. 5, Bailment, § 44): "As a general rule, the terms, express or implied, of the contract of bailment determine the rights, duties, and liabilities as between the parties, and, of course, either party may impose on the other such terms as they may agree upon."

Subdivision 1 of section 96 of the Banking Law sets forth the general power of banks and states: "and receive deposits of moneys, securities or other personal property upon such terms as the bank * * * shall prescribe".

An examination of the foregoing authorities leads to the inescapable conclusion firstly, that the relationship between the plaintiff and the defendant in this particular case before the court is that of a bailor and bailee and secondly, that the relationship between the two is defined and is to be determined by their own contract.

Defendant's Exhibit A, the night depository service agreement, states that the debtor-creditor relationship shall not arise by reason of the night depository facilities and that no deposit shall exist until a credit is made in depositor's account and then only to the amount of such credit, that the bank would not be liable for loss, destruction or disappearance, or failure to find the money bag allegedly placed in the depository. Defendant's Exhibit B states that the privilege of using the depository service is gratuitous and at the sole risk of the depositor. The agreements between the parties appear to be crystal clear. What effect, if any, the same has concerning the question of negligence is not before the court. The plaintiff in the instant case sought to recover for conversion.

Melnick v. Kukla (228 App. Div. 321, 323, 324): "Conversion is 'an unauthorized assumption and exercise of the right of ownership over goods or personal chattels belonging to another, to the alteration of their condition or the exclusion of the owner's rights.' (Bouvier Law Dict. (Rawle's 3d Rev.) 669.) While money may be the subject of conversion, the same as any chattel, in order to entitle the plaintiff to recover in trover, it must appear that $250 of the identical money paid to defendant by Mrs. Melnick actually belonged to and was the property of the plaintiff, and that the defendant had converted this money to his own use. * * *

"Plaintiff has elected to sue in tort. * * * The character of the action must be determined by the pleadings."

Salt Springs Nat. Bank v. Wheeler (48 N. Y. 492, 495): "To authorize the action of trover, two things are necessary: 1. Property in the plaintiff with a right of possession; and 2. A conversion by the defendant of the thing to his own use. This conversion consists of the appropriation of the thing to the party's own use and beneficial enjoyment, or in its destruction, or in exercising dominion over it in defiance of the plaintiff's right, or in withholding it under a claim of title. * * ...


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