29 Jul No Comments MikeT Expert Matters, Theft of Checks Payable

Facts: A national real estate management firm brought suit in the United States District Court for the District of New Jersey against a community bank claiming that its joint venture partner had wrongfully opened an account at the community bank in the name of the joint venture and had deposited into the account over forged payee endorsements on three checks totaling $1.5 million. The suit also alleged that the bank negligently opened the account at issue.

Testified For: The community bank

Subject of Expert Report: Whether or not the policies and procedures followed by the community bank with respect to the opening of business checking accounts was consistent with the reasonable commercial standards of the banking business in New Jersey at that time; and whether or not the community bank converted the three checks at issue by accepting the checks for deposit bearing forged payee endorsements.

Outcome: The Court granted the bank’s motion for summary judgment and the Plaintiffs appealed. The case settled while on appeal in October 2009.