United States Second Circuit
E. ARMATA, INC. v. KOREA COMMERCIAL BANK OF NEW YORK, 03-7038
Under the Perishable Agricultural Commodities Act (PACA), a bank is not liable to the beneficiaries of a PACA trust for receipt of funds in breach of the trust where, having extended revolving overdraft privileges to a produce dealer covered by PACA, the bank routinely applied deposited PACA funds to reduce the negative balance in the produce dealer's overdrawn account. (Amended opinion)
Appellate Information
- Decided 03/12/2004
- Published 04/29/2004
Judges
- JOSÉ A. CABRANES, Circuit Judge., Before: VAN GRAAFEILAND, McLAUGHLIN and CABRANES, Circuit Judges.
Court
- United States Second Circuit
Counsel
- For Appellant:
- Leonard Kreinces (Howard S. Rosenberg, on the brief), Kreinces & Rosenberg, Westbury, NY, for Plaintiffs-Appellants E. Armata, Inc., Finest Fruits, Inc., L & P Fruit Corp, and Ven-Co Produce, Inc.
- For Appellees:
- Christoph C. Heisenberg, Winston & Strawn, New York, NY, for Defendant-Appellee Korea Commercial Bank of New York.