Rob Maher and Kristie Orme obtain complete dismissal in favor of Bank on check forgery and negligence case


Bank was sued in 2011 by a former commercial account holder whose bookkeeper had forged checks totaling over $90,000.  The account holder sought to hold the bank liable for a breach of duty under Article 4 of the UCC and for negligence and demanded over $150,000 in liability.  In July of 2014, Rob Maher and Kristie Orme replaced former counsel for the bank.  After some limited discovery, a Motion for Summary Judgment was filed on behalf of the bank against its former account holder in late 2014.

The bank argued that the account holder’s claims failed as a matter of law because the account holder had an obligation to inspect its monthly bank statements and report unauthorized signatures to the bank within the time limits required by both the UCC and the account agreement.  Mr. Maher and Ms. Orme argued that the account holder had failed to timely meet its obligations under the UCC and the account agreement.      

Based on the law cited in the dispositive motion and the factual presentation put together by the two McDowell Rice attorneys, the plaintiff account holder agreed to dismiss the lawsuit with prejudice.  The bank made no payment to the plaintiff and the lawsuit was dismissed with prejudice.

 

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