S. & V. CORPORATION, APPELLANT,
v.
MIAMI BEACH FIRST NATIONAL BANK, APPELLEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
A corporation sought to recover funds misappropriated by its president through checks drawn on a bank account. The court affirmed summary judgment for the bank, holding that absent fraud, collusion, or active negligence, a bank is not liable for honoring checks properly signed by authorized officers pursuant to a valid corporate resolution.
A banking institution is not liable to a corporation for converted funds drawn from the depository upon checks signed by a duly authorized officer pursuant to a corporate resolution on file with the bank, absent fraud, collusion, or active negligence by the bank.
“in the absence of such, a banking institution generally is not liable to a corporation for converted funds drawn from such depository upon the checks of the corporation, signed by a duly authorized officer pursuant to a corporate resolution on file with the bank”
Establishes the court's holding that banks have no liability for misappropriated funds absent fraud, collusion, or active negligence
Previewing 1 of 2 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceS. & V. Corporation deposited funds in Miami Beach First National Bank and provided the bank with a corporate resolution authorizing solely its presid…
The full statement of facts, procedural history, and disposition for this case are member content.
Join FLexlaw to unlock all legal intelligence© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Explore caselaw by topic → Browse Collusion cases and more on FLexlaw
Appellant, plaintiff in the trial court, filed a complaint against the appellee-bank, seeking to recover corporate funds deposited in the bank which had been misappropriated by its president. The facts were not in dispute and both parties moved for a summary judgment. A summary final judgment was rendered in favor of the bank and this appeal ensued. We affirm.
On opening the bank account, the corporation caused a resolution with very broad powers 1 to be served upon the bank, authorizing solely its president to sign the checks of the corporation. There was no contention that the bank was guilty of fraud, collusion, or any active negligence in the honoring of the checks drawn by the corporation’s president and, in the absence of such, a banking institution generally is not liable to a corporation for converted funds drawn from such depository upon the checks of the corporation, signed by a duly authorized officer pursuant to a corporate resolution on file with the bank. See: Gate City Bldg. & Loan Ass’n. v. National Bank of Commerce, 126 Mo. 82, 27 S.W. 633; McCullam v. Third National Bank, 209 Mo.App. 266, 237 S.W. 1051; Griffin v. National Bank of Commerce in St. Louis, S.Ct.Mo.1922, 246 S.W. 180; Klachko v. Lawyers Trust Co., 170 Misc. 134, 9 N.Y.S.2d 309.
Therefore, the final summary judgment here under review is hereby affirmed.
Affirmed.