28 Oct No Comments Remik Expert Matters

Facts:  A minority owner of the plaintiff limited liability company (LLC) opened an account in a name very similar to the name of the LLC at the defendant bank.  Over a period of some years, this individual took checks payable to the LLC and deposited the checks into the unauthorized account at the defendant bank.  The deposited checks were payable in various ways – some to the actual name of the LLC, some to a variation of the name of the LLC and some to the owner individually.  When the majority owner discovered the misappropriation, he caused the LLC to file a lawsuit against the bank essentially claiming that the defendant bank converted the funds represented by the checks by allowing the minority owner to deposit the checks into the unauthorized account.

Client:  The plaintiff LLC.

Subject of Expert Report: Whether or not the defendant bank acted in a commercially reasonable manner by allowing the minority owner of the LLC to (1) open a checking account using a name substantially similar to that of the LLC and (2) allowing the minority owner to deposit the checks payable to variations of the name of the LLC into the account.

Outcome:  The case settled shortly after the expert opinion was rendered.