Brucker v. Dime Savings Bank
Court: Appellate Division of the Supreme Court of the State of New York; March 4, 1996; New York; State Appellate Court
Plaintiff opened an IRA account with the defendant bank on December 12, 1976. In August 1982, after reaching the mandatory distribution age of 70½, he discussed a ten-year payout plan with a bank representative and selected a plan that offered fixed monthly payments. The bank confirmed receipt of his instructions and stated that he would receive $189 monthly payments. However, on March 1, 1987, the bank informed him of a maturing certificate of deposit with a balance of $5,973.68, which he was unaware was funding his IRA. After expressing concerns, bank representatives assured him multiple times that he was on the ten-year plan. In January 1990, he received a check for $165.45 and was informed that his account was closed. The bank attributed the payment calculation to declining interest rates. The Civil Court ruled in favor of the plaintiff, awarding him $9,054.46 based on his contractual right to the ten-year payout. The Appellate Term reversed this decision, stating the bank had no contractual obligation to pay the specified amount. Upon review, the higher court reinstated the Civil Court's judgment, confirming that there was a clear offer and acceptance of the ten-year payout at the agreed monthly rate. The Appellate Term's assumption that the plaintiff had knowledge of the funding source was deemed incorrect, as there was no evidence presented to support this claim. The court found no basis to reverse the Civil Court's factual findings.