OSWEGO LABORERS' LOCAL 214 PENSION FUND ET AL., APPELLANTS, v. MARINE MIDLAND
BANK, N.A., RESPONDENT.
85 N.Y.2d 20, 647 N.E.2d 741, 623 N.Y.S.2d 529 (1995).
February 14, 1995
4 No. 17 (1995 NY Int. 026)
Decided February 14, 1995
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This opinion is uncorrected and subject to revision before publication
in the New York Reports.
Donald D. Oliver, for Appellants.
Janet D. Callahan, for Respondent.
KAYE, CHIEF JUDGE:
This appeal by two union funds from dismissal of their action against
a bank focuses on the meaning of the phrase "deceptive acts and
practices" as used in General Business Law 349. We conclude that there
are questions of fact as to whether the bank's acts constituted
conduct prohibited by the statute.
According to the undisputed facts, plaintiffs Pension Fund and Welfare
Fund are not-for-profit associations that administer pension benefits
and health insurance for union members and their beneficiaries. Both
Funds had dealt with defendant Marine Midland Bank since the 1960's,
when the Bank became their Corporate Trustee, and since at least 1973
the Bank had been Investment Advisor for the Welfare Fund.
On May 19, 1976, Robert Bradshaw, administrator of both Funds, met
with Bruce Whitney, Marine's vice president and branch manager of the
East Side Oswego office. Whitney had attended meetings of the Funds'
Trustees and was known to Bradshaw. Bradshaw told Whitney that he
wanted to open an interest-bearing savings account for the Pension
Fund, which at the time had monies in non-interest-bearing checking
accounts at Marine.
Marine offered two types of savings accounts--one for individuals,
another for commercial entities. For commercial entities, Federal
Regulation Q (12 CFR § 217 et seq.) capped the principal upon which
interest could be paid--a maximum of $100,000 through 1979, and a
maximum of $150,000 thereafter. Not-for-profit entities were exempt
from this regulation. To effectuate its own compliance with Regulation
Q, Marine used blue signature cards for for-profit commercial
SNIPPETS:
OSWEGO LABORERS' LOCAL 214 PENSION FUND ET AL., APPELLANTS, v. MARINE MIDLAND
This opinion is uncorrected and subject to revision before publication in the New York
This appeal by two union funds from dismissal of their action against a bank focuses on the
We conclude that there are questions of fact as to whether the bank's acts constituted
plaintiffs Pension Fund and Welfare Fund are not-for-profit associations that administer
Both Funds had dealt with defendant Marine Midland Bank since the 1960's, when the Bank
On May 19, 1976, Robert Bradshaw, administrator of both Funds, met with Bruce Whitney,
Bradshaw told Whitney that he wanted to open an interest-bearing savings account for the
For commercial entities, Federal Regulation Q capped the principal upon which interest could
To effectuate its own compliance with Regulation Q, Marine used blue signature cards for
In opening the savings account for the Pension Fund with an initial deposit of $10,000,
The signature card stated that the account was subject to the Bank Rules Governing Commercial
Supreme Court granted defendant's motion for summary judgment, stating in its order that the
Section 349of the General Business Law declares as unlawful "deceptive acts and practices in
Consumer Fraud: Caveat Venditor,
The power to obtain injunctions against any and all deceptive and fraudulent practices will
A prima facie case requires as well a showing that defendant is engaging in an act or
Holding Corp., 81 NY2d 958, 961; Givens, Supp Practice Commentaries, McKinney's Cons of NY,
Opinion by Chief Judge Kaye.
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