Court Opinion

ID: 9635707
Source: CourtListenerOpinion
Date Created: 2023-08-22 14:01:07.849109+00
Date Added: 2024-06-11T18:09:33.241494
License: Public Domain

P ashman, J.
(concurring and dissenting). This case represents a multi-party action arising from a series of financial transactions whose focal point is four checks drawn by Seabrook Farms Co., Inc. (Seabrook) between March and June 1971. These checks, which plaintiff Thermo Contracting Corp. (Thermo) claims as its rightful compensation, were delivered to Peter T. Kashulines, subcontractor for Thermo or his agents. Although all of these checks were made payable to Thermo, they were endorsed by and deposited in an account belonging to Kashulines. Payment was made on these endorsements by defendant The Bank of New Jersey.
The suit which was originally filed by Thermo alleged conversion and negligence by The Bank of New Jersey, negli*365gence by Seabrook and conversion by Kashulines.1 The filing of this suit was followed by a proliferation of cross-claims and counterclaims and the assertion of various defenses. When reduced to its bare essentials, the case basically considers only two questions on appeal: (1) What liability accrues to The Bank of New Jersey for its wrongful payment to Kashulines on his endorsement; and (2) What is Seabrook’s liability for its misdelivery to Kashulines?
Properly considered these two questions concern different issues and involve different parties. Therefore, they can, and in my opinion do, command different dispositions. Accordingly, because there is a genuine issue of material fact as to the ratification by Thermo of Kashulines’ authority to endorse the checks, I would concur in the result reached by Justice Schreiber in his dissenting opinion and would reverse the summary judgment entered in favor of the Bank. The issue of the Bank’s liability should be remanded for trial.
On the other hand, I find that Thermo clothed the subcontractor Kashulines with apparent authority to receive payment from Seabrook and should not be heard to complain of the consequences of its own actions. I therefore concur in the result of the majority to the extent that summary judgment be entered against Thermo in its action against Seabrook.

A fourth party, the drawee-bank, First National State Bank of New Jersey was also charged with conversion and negligence.