C. Nicholas Pereos, Ltd. v. Bank of Am.
Annotate this CaseUnder Nev. Rev. Stat. 104.4406, a customer generally must exercise reasonable promptness in examining a bank statement and within thirty days notify the bank of any unauthorized transactions. Plaintiff, a law firm, sued Bank of America after discovering that the firm’s employee had used unauthorized signatures to withdraw funds from the firm’s operating account with the bank. The district court granted summary judgment in favor of Bank of America, concluding that all claims were time-barred under section 104.4406 because there was no dispute that the bank statements received by the firm were sufficient to notify it of the unauthorized activity on the firm’s account. The Supreme Court reversed, holding (1) genuine issues of material fact remained as to the delivery method of the bank statements, the content of online and received-in-branch statements, and Bank of America’s exercise of due care in paying certain unauthorized transactions; and (2) unauthorized account transactions that occur within the one-year period before the customer gives notice to the bank are not time-barred under section 104.4406(6)’s one-year period of repose because the statute does not differentiate between a single forgery and multiple forgeries by the same wrongdoer, and therefore, the one-year period of repose begins to run with each successive forgery.
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