28 Oct No Comments Remik Expert Matters

Facts:  The office manager of the plaintiff law firm was owed money by the law firm.  To pay himself, he drew a check on the firm’s attorney-trust account and made it payable to the firm’s business account, forged the signature of a partner of the firm on the check, and deposited the check into the firm’s business account.  He then drew a second check on the firm’s business account, made the check payable to himself, forged the signature of the partner on the check and deposited the check into his account that was maintained at the same bank as was used by the law firm.   The firm detected the forged checks within 48 hours and notified the bank of the forgeries.  The bank responded by reversing the payment of the two checks and commencing an investigation.  The bank’s investigation concluded that the office manager was in fact owed the money taken by the law firm.  The bank then removed the amount allegedly owed to the office manager from the firm’s attorney trust account and credited the funds to the account of the office manager.

Client:  The plaintiff law firm.

Subject of Expert Report:  Whether the bank had a right of set-off against the law firm’s attorney trust account and whether the bank acted in good faith by taking sides with the office manager against the law firm.

Outcome:  The case settled the week before trial.