New York Court of Appeals

George R. Dyer, Appellants v. Broadway Central Bank, Respondent

January 7, 1930252 N.Y. 430

Summary

The New York Court of Appeals held that the plaintiffs' amended complaint sufficiently alleged a cause of action against the bank for breach of contract, denying the motion to dismiss and reversing the lower courts' dismissals. The Court affirmed that a bank may, as an incidental power necessary to banking, order the purchase of stock and be liable as principal.