Case Involving Cashing Stolen Checks In a Casino

In Adamar of N. J. v. Chase Lincoln First Bank (201 AD2d 174 4th Dept 1994), the Appellate Division determined that the Tropicana Casino in New Jersey became a holder in due course of signed cashier's checks with blank payee designations which a thief had stolen from the defendant and negotiated to the casino for value after filling in the payee designation with his brother-in-law's name. The Appellate Division, assuming without discussion that the thief was a "holder" of the stolen instruments and therefore able to transfer good title, held the defendant obligated to make payment on the stolen checks. (Accord, Walcott v. Manufacturers Hanover Trust, 133 Misc 2d 725 Civ Ct, Kings County 1986 check-cashing service which unknowingly took for value from an intervening thief the plaintiff's check, which the plaintiff had endorsed in blank and thus converted to a bearer instrument, was a holder in due course of the check, having received good title from the thief.)