Wednesday, December 07, 2005
1. Can the one-year statute of repose established by New York UCC 4-A-505 be varied by agreement? If so are there any minimum limits of the variation thereof (such as "reasonable time") that estop the bank from denying Regatos recovery?
2. In the absence of agreement, deos New York UCC Article 4-A require actual notice, rather than merely constructive notice? If so, can this requirement be altered by agreement of the parties and was such achieved in this case?
The New York State Court of Appeals held that the statute of repose could not be varied by agreement. It further held that actual notice was required by the statute and that this requirement could not be altered by agreement.
In light of these answers, the Second Circuit affirmed the District Court's award of $731,005.48, plus interest, to Regatos.
The decision in this case can be found here.