Minskoff v. American Express Travel Related Services Co., Inc.

Equities' office manager Susan Blumenfeld, without authorization, obtained an additional American Express card in her own name on the company's corporate account and racked up over $28,000 in unauthorized personal charges, then intercepted and forged checks from Equities' account to pay every one of the 28 monthly statements American Express sent — statements Equities never reviewed. Blumenfeld later opened a separate platinum account the same way, charging roughly $300,000, again paying with forged company checks and again unreviewed statements; Equities discovered the fraud only when its bank called about a suspicious check. Equities and Minskoff (plaintiffs) sued American Express (defendant) for a refund of the unauthorized charges and a declaration they were not liable for the platinum account's balance; American Express counterclaimed for that balance, and the trial court granted American Express summary judgment.