Marx v. Whitney National Bank

David Marx (plaintiff) held a checking account at Whitney National Bank (Whitney) (defendant), which sent him monthly statements. Marx's grandson forged and cashed a series of checks against the account over several months, but Marx did not review any of his bank statements from January through April 1995 and so never noticed the first five forged checks. Only when Marx's son (a joint owner added to the account in April) reviewed the May statement did anyone catch the forgeries; Marx then reported them and sought reimbursement, which Whitney refused. Marx and Whitney both agreed Marx had been negligent in failing to review his statements. The trial court granted Whitney summary judgment, the court of appeal affirmed, and the Louisiana Supreme Court granted certiorari.