Dawda, Mann, Mulcahy & Sadler, P.L.C. v. Bank of America, N.A.
United States District Court for the Eastern District of Michigan
62 F. Supp.3d 651 (2014)
Relevant factsFree
A rogue employee, Flaska, drew checks totaling over $500,000 from his law firm employer Dawda's (plaintiff) client trust account and deposited them into his own personal account at Bank of America (defendant), which had no business relationship with Dawda; Dawda sued the bank for negligently failing to discharge its common-law duty of inquiry, and the bank, after removing the case to federal court, moved to dismiss, arguing it was a holder in due course to which the duty of inquiry didn't apply.
IssueFree
Whether the common-law duty of inquiry can preclude a party from becoming a holder in due course of a negotiable instrument.