In an October 7, 2010 decision by Justice Kapnick the Court granted partial summary judgment to the defendant bank on claims brought by a customer stemming from the customer’s employee’s cashing forged checks.
The former employee cashed almost $1 million of checks from two different corporate bank accounts. Citing New Jersey law, the Court granted the motion to dismiss some claims under NJ UCC 4-406(f) which provides a limited statute of limitations but let other claims continue because there was an issue of fact whether one of the plaintiffs had executed a contract with the bank. The Court also granted the motion to dismiss the fraud claims, but allowed the conversion claims to proceed because a bank may be held strictly liable under the UCC for conversation.
DMDB Adults Inc. and DMDB Kids Inc. v. Bank of American Corp. d/b/a Bank of America, Sup Ct, New York Count, October 7, 2010, Kapnick, J, Index No. 103977/09