Justia Banking Opinion SummariesArticles Posted in Tennessee Supreme Court
Estate of Ella Mae Haire v. Webster
The Supreme Court reversed the decision of the court of appeals affirming the trial court’s judgment granting a bank’s motion to dismiss this action brought by Plaintiff, holding that the allegations of the complaint were sufficient to survive the bank's motion to dismiss.Plaintiff was listed as a joint tenant with right of survivorship on the checking and savings accounts. Plaintiff brought this breach of contract action alleging that Defendant, the bank, removed his name from checking and savings accounts without his consent and breached its duty to him as co-owner of the account by accepting forged signature cards. The Supreme Court reversed the dismissal of Defendant’s motion to dismiss, holding (1) Plaintiffs sufficiently complied with Tenn. R. Civ. P. 10.03 by attaching the signature cards reflecting his status as a joint tenant with right of survivorship, which is the basis of his breach of contract claim; and (2) Plaintiff’s claims were sufficient to survive a motion to dismiss because, under Tennessee law, a contractual relationship arises between a bank and joint tenants upon the creation of joint tenancy bank accounts and no statute affords banks protection from liability for removing a joint tenant’s name from an account without the joint tenant’s consent. View "Estate of Ella Mae Haire v. Webster" on Justia Law
First Cmty. Bank, N.A. v. First Tennessee Bank, N.A.
Plaintiff, a bank, filed suit against multiple defendants for fraud, constructive fraud, civil conspiracy, negligent misrepresentation, unjust enrichment, and violation of the Tennessee Securities Act. Three non-resident defendants (the “Ratings Agencies”) moved to dismiss based on lack of personal jurisdiction and failure to state a claim. The trial court granted the motion and dismissed Plaintiff’s claims. The Supreme Court (1) affirmed the judgment of the trial court finding that Plaintiff failed to establish a prima facie case of personal jurisdiction under a theory of general jurisdiction or specific jurisdiction; but (2) vacated the dismissal of Plaintiff’s action against the Ratings Agencies on the theory of conspiracy jurisdiction, holding that although Plaintiff has failed to establish a prima facie case of conspiracy jurisdiction at this point, the case must be remanded for the trial court to determine if Plaintiff should be allowed to conduct jurisdictional discovery on the conspiracy theory of personal jurisdiction in a manner consistent with the guidelines set forth in this opinion. View "First Cmty. Bank, N.A. v. First Tennessee Bank, N.A." on Justia Law