National Union Fire Ins. Co. v. Hometown Bank, N.A., et al.

This case arose when an investment advisor committed fraud by opening a doing-business-as ("d/b/a") bank account using the name of his employer when he did not have the employer's authority to do so. The employer's insurance company subsequently filed suit against the bank, alleging that the bank negligently failed to inquire into whether the former advisor had authority to open the d/b/a account. The court affirmed the district court's dismissal of the suit because the bank owed no recognized duty to the employer. View "National Union Fire Ins. Co. v. Hometown Bank, N.A., et al." on Justia Law