Wachovia Bank, N.A. v. Federal Reserve Bank of Richmond
A large dollar item being mailed by a bank customer to a payee is stolen from the mail. The payee is altered. The item is paid. Who bears the loss?
Deposit Account Fraud/UCC Issues
J. Walter Thompson, U.S.A., Inc. v. Bank of America Corporation
A check was written to a vendor. Someone intercepted the check, altered the payee, and deposited the check to an account in the name of the new payee.
Phil & Kathy's Inc. v. Safra National Bank of New York
Phil & Kathy's gave a $1.5 million payment order to Harris Trust and Savings Bank. The order named a beneficiary that was not identifiable as a customer at Safra Bank, and Safra did not accept the order.
PATCO Constructions Company, Inc., v. People’s United Bank, d/b/a Ocean Bank
In May 2009, Ocean Bank authorized six ACH transfers totaling $588,851.26 from PATCO’s account.
Fernando Tatis v. US Bancorp
The Sixth Circuit U.S. Court of Appeals affirmed a district court's summary judgment in favor of US Bancorp. A depositor had claimed that the bank had wrongfully paid several forged checks on his account.
Douglas Companies, Inc. v. Commercial National Bank of Texarkana
Nearly everything that could go wrong did in this case. A bank under-encoded a large check, shorting its depositor $216,000. The depositor didn't catch the error for several months. The bank sent its adjustment request to the wrong address.
Cassello v. Allegiant Bank and Royal Banks of Missouri
One of the issues that arises in check fraud situations is what type of cause of action can be used. In this case, the customer sued for negligence and the bank argued that the UCC preempted claims for negligence.
National Title Insurance Corporation Agency v. First Union National Bank
How long does a customer have to discover a forged signature check? The UCC, in 4-406, says if it's been more than a year, the customer is precluded from passing the loss to the bank.
Barki v. Liberty Bank & Trust Company
Doctor writes checks payable to banks for TT&L payments. Accountant embezzles by placing the checks into his own accounts. Years later, the doctor realizes the taxes haven't been paid and sues her bank.
Dalton & Marberry v. NationsBank
Employee of bank customer embezzled over $100,000 by exchanging over a period of four and one-half years 93 company checks made payable to the bank for blank cashier's checks or money orders.