Saint Bernard School of Montville Inc. v. Bank of America
Connecticut General Statutes §42a-4-406 provides, "A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in the statement of account sufficient to allow the customer reasonably to identify the items paid." The plaintiff, the Saint Bernard School of Montville Inc., alleged that the defendant, Bank of America, permitted the plaintiff's employee to open an unauthorized bank account, known as the Camp Sunshine account, and that the plaintiff's employee withdrew funds from the plaintiff's main operating account and deposited them into the Camp Sunshine account. The plaintiff's employee also allegedly took funds that should have been deposited in the plaintiff's main operating account and deposited them into the Camp Sunshine account. The plaintiff alleged that the defendant bank breached its contract, because it did not require the plaintiff's employee to prove he possessed the authority to open and to deposit operating funds into the Camp Sunshine account. Allegedly the plaintiff's employee misappropriated funds in the amount of $840,000. The defendant bank submitted its bank officer's affidavits, moved for summary judgment and argued that the deposit contract provided the plaintiff only 60 days to inform the defendant bank about unauthorized items. The court found that the bank officer's affidavits were inconsistent with respect to which bank deposit contracts governed the plaintiff's main operating account. There were genuine issues of material fact with respect to which bank deposit contracts governed. Although the defendant bank argued that C.G.S. §42a-4-406 applied, there was a genuine issue of material fact with respect to whether bank statements were sufficient to permit the plaintiff to identify the items, the amounts and the dates of payment. The court denied the defendant bank's motion for summary judgment.