First Financial Bank, N.A. v. Citibank, N.A.

Attorney Misty McDonald deposited a nearly $300,000 cashier's check from Citibank (defendant) at First Financial Bank (plaintiff); the check bounced due to an invalid account number, and Citibank, claiming First Financial's endorsement was illegible, routed its nonpayment notice electronically to the intermediary Chase bank instead of directly to First Financial. By the time First Financial learned of the dishonor, McDonald had already wired the funds to China, and First Financial's attempt to reverse the wire failed. First Financial sued Citibank for violating Regulation CC's check-processing rules and sought summary judgment holding Citibank liable for the loss.