N.Y. U.C.C. 4-402

Section 4--402. Bank's Liability to Customer for Wrongful Dishonor.\n A payor bank is liable to its customer for damages proximately caused\nby the wrongful dishonor of an item. When the dishonor occurs through\nmistake liability is limited to actual damages proved. If so proximately\ncaused and proved damages may include damages for an arrest or\nprosecution of the customer or other consequential damages. Whether any\nconsequential damages are proximately caused by the wrongful dishonor is\na question of fact to be determined in each case.\n