23 Jan No Comments Remik Expert Matters

Facts:  The plaintiff law firm maintained the law firm’s accounts at the defendant bank.  In addition, the partners of the firm and the families of the partners maintained personal accounts and accounts of business entities owned by the partners.  Over a number of years, the bookkeeper for the law firm induced the employees of the defendant bank to allow her to transfer funds from the personal accounts of the partners and their family members and the accounts of the business entities owned by the partners to the personal account of the bookkeeper.  After the fraud was detected, the law firm, the partners, the family members and the business entities brought suit against the bank alleging that the funds transfers were unauthorized and that the bank was liable for the bookkeeper’s misappropriations.

Issues for the Expert: Whether or not it was a commercially reasonable banking practice for a bank to allow a person who was not an authorized signer on an account to withdraw and transfer funds in an account to an account of an unrelated third party.

Client: The Plaintiffs.

Outcome: The case was tried without a jury.  Following the trial, the court ruled in favor of the Plaintiffs on some claims and against the Plaintiffs on other claims, finding that certain claims were barred by virtue of the deposit account agreement for the account.