National Union Fire Ins. Co. v. Hometown Bank, N.A., et al., No. 13-2184 (8th Cir. 2014)
Annotate this CaseThis case arose when an investment advisor committed fraud by opening a doing-business-as ("d/b/a") bank account using the name of his employer when he did not have the employer's authority to do so. The employer's insurance company subsequently filed suit against the bank, alleging that the bank negligently failed to inquire into whether the former advisor had authority to open the d/b/a account. The court affirmed the district court's dismissal of the suit because the bank owed no recognized duty to the employer.
Court Description: Civil case. In action by insurer alleging the defendant bank had been negligent in failing to determine whether an investment advisor had authority to open a "d/b/a account" using the name of his employer, the insured party under the insurance policy in question, the district court did not err in dismissing the action on the ground the bank owed no recognized duty to the employer.
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