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Posts published in “Banking”

8th Cir. Rejects Conversion Claims by Decedent’s Estate Against Bank for Lack of Standing

The U.S. Court of Appeals for the Eighth Circuit recently affirmed the dismissal of several conversion claims brought by the estate of a deceased account holder against a bank, holding that one of the conversion claims was time-barred, and that the estate did not have standing to pursue the remaining conversion claims as the alleged injury was not fairly traceable to the bank.

Calif. App. Court (2nd Dist) Holds Bank Owed Duty of Care to Deposit Customer as to Blocked Account

The California Court of Appeal, Second Appellate District, recently reversed a trial court's ruling, and held that a defendant bank owed the plaintiff law firm a duty of care based on the special relationship the bank had with the law firm as an intended beneficiary of a probate court’s blocked account order.

6th Cir. Confirms Bank Entitled to Restitution When Payment Made by ‘Mistake’ and Not ‘For Value’

The U.S. Court of Appeals for the Sixth Circuit recently held that, because a bank teller paid checks on an account that had insufficient funds by “mistake” and did not take those checks “for value” by issuing replacement “teller’s checks,” the bank was entitled to restitution for the amount of the checks under the Tennessee Commercial Code.

Illinois App. Court (1st Dist) Rejects Borrower’s Arguments That Breach of Forbearance Agreement Was Not ‘Material’

The Appellate Court of Illinois, First District, recently rejected a borrower's arguments that his breach of a forbearance agreement was immaterial, and that the lender was attempting to use the breach for an improper purpose by attempting to recover substantially more than the amount to which it was allegedly entitled.

Indiana Supreme Court Reverses Order Compelling Arbitration in ‘Overdraft Fee’ Class Action

The Supreme Court of Indiana recently reversed and remanded a trial court’s order compelling arbitration of two bank customers’ putative class action complaint. In so ruling, the Court held that the account agreement’s change-of-terms clause did not allow the defendant bank to add an addendum compelling arbitration and restricting class actions to the terms and conditions of the customers’ account agreement.

3rd Cir. Holds TILA Does Not Require Breakdown of Annual Credit Card Fee

The U.S. Court of Appeals for the Third Circuit recently affirmed the dismissal of a consumer’s claims under the federal Truth in Lending Act, 15 U.S.C. § 1601 et seq., and its implementing regulation, Regulation Z, 12 C.F.R. § 1026. In so ruling, the Third Circuit held that TILA does not require disclosure of each individual component of the total annual fee in a renewal notice for a credit card.

DC Circuit Holds CFPB’s Prepaid Rule Did Not Contravene EFTA, Reversing Trial Court

The U.S. Court of Appeals for the District of Columbia Circuit recently reversed the ruling of a trial court and concluded that the Consumer Financial Protection Bureau’s Prepaid Rule, which regulates digital wallets and other prepaid accounts, does not mandate a “model clause” in violation of the Electronic Fund Transfer Act.

2nd Cir. Affirms Dismissal of RICO, Antitrust, Other Claims Arising from Alleged LIBOR Manipulation

After nearly a decade of litigation, the U.S. Court of Appeals for the Second Circuit recently affirmed the dismissal of a putative class action brought against more than 20 international financial institutions alleging a conspiracy to manipulate Yen-LIBOR and Euroyen TIBOR rates.

Calif. App. Court (1st Dist) Allows Private State False Claims Action for Failure to Report and Deliver Escheated Property

The California Court of Appeal, First District, recently held that a qui tam plaintiff may pursue a California False Claims Act (CFCA) action predicated on a bank’s failure to report and deliver escheated property, even if the California State Controller does not provide appropriate notice to the bank under California Code of Civil Procedure Section 1576.