Plaintiff, the insurer/subrogee of one of defendant's depositors, was entitled to summary judgment here pursuant to UCC § 4-401(1), which holds defendant bank strictly liable for payment of checks not "properly payable," i.e., bearing forged signatures (Putnam Rolling Ladder Co. v. Manufacturers Hanover Trust Co., 74 N.Y.2d 340, 345; Ernst Co. v. Chemical Bank, 209 A.D.2d 241, 243). The record evidence that the signatures were forged is undisputed. Defendant, in opposition to summary judgment, relied on UCC § 3-406, alleging that plaintiff's assignor's negligence substantially contributed to the forgery. This purported defense is unavailing since, even if true, the defendant bank utterly failed to show that there was no contributory negligence on its part and "that it exercised `reasonable commercial standards' in verifying signatures on the checks presented to it for payment" (Zambia Natl. Commercl. Bank Ltd v. Fidelity Intl. Bank, 855 F. Supp. 1377, 1387). Failure to demonstrate its observance of "reasonable commercial standards" in such circumstances "places liability squarely with the bank" (id. at 1388).
We have considered defendant's remaining contentions and find them unavailing.
THIS CONSTITUTES THE DECISION AND ORDER OF THE SUPREME COURT, APPELLATE DIVISION, FIRST DEPARTMENT.