Braden Furniture Company, Inc. v. Union State Bank

According to Braden Furniture Company, Inc., between 2003 and 2010, Bonnie Manning, an assistant bookkeeper, accessed Braden Furniture's accounting program and created over 200 unauthorized checks, totaling over $470,000, that she then deposited in her account at Union State Bank. The majority of the checks did not identify a payee. Braden Furniture sued Union State Bank, RBC Bank, and Manpower, Inc., alleging common-law negligence and wantonness and violations of sections 7-3-404(d), 7-3-405(b), and 7-3-406, Ala. Code 1975. Union State Bank moved for a summary judgment. The trial court entered summary judgment for the Bank. Upon review, the issue before the Supreme Court was whether provisions in the Alabama Uniform Commercial Code ("the UCC") displaced common-law claims of negligence and wantonness when a drawer seeks to recover the loss of payment for unauthorized checks. Braden Furniture contended that the trial court erred in holding that the provisions of the UCC displaced its common-law claims of negligence and wantonness because, allowing its common-law claims to proceed did not "create rights, duties and liabilities inconsistent" with the UCC. The Supreme Court concluded that the trial court did not err in entering a summary judgment for Union State Bank in this regard. View "Braden Furniture Company, Inc. v. Union State Bank " on Justia Law