First Place Bank v. Olympia Logistics & Services, Inc.

2013 WL1122559 (2013)

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Nature of the Case

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Facts

Greis and Olympia (D) were victims of fraud perpetrated by Jay Ritz. Greis is a jewelry store. Greis posted a rare Audemars Piguet watch for online sale at a price of $41,000.00. Greis was selling it on consignment for another party. Ritz contacted Greis about buying the watch. Ritz also wanted to purchase a ladies' watch. Greis did not have the ladies' watch in stock, but Ritz agreed that Greis would purchase the parts and assemble it in-house for a reduced price. The two watches cost $47,000.00. Ritz and Greis agreed to a wire transfer. Greis provided wiring information to its bank account at First Place (P). Ritz was also negotiating a transaction with D. D is an export business based in Miami, Florida. Sayin, Bozkurt, and Ritz negotiated the sale of a car, which, according to Ritz, was located outside Portland, Oregon. Eventually, Ritz and Sayin settled on a purchase price of $47,000.00. They agreed on a wire transfer payment. After Greis provided Ritz with Greis' wiring information for its First Place account, Ritz gave that information to D, representing that it was his personal account. Ritz also told D to earmark the recipient as 'Greis JEW, Inc.' Later that day, D instructed its bank, Regions Bank, to wire $47,000.00 to 'Greis JEW, Inc,' account ending in 7140, located at P. Sayin's wife, an authorized signer of D's accounts, signed the Wire Transfer/Request Authorization form at Regions. While D's wire was proceeding Ritz and Greis exchanged emails about shipping the watches. Greis verified the transaction with P. Greis's account was credited because 'Greis JEW, Inc,' was an abbreviation of the listed account holder 'Greis Jewelers, Inc.' This was consistent with P's internal policies. Greis verified the shipping address and shipped the Audemars Piguet to Ritz. Eventually, Greis also shipped the ladies' watch to Ritz. D tried to arrange to get the car from Ritz. On August 3rd, Ritz gave D a false location. Sayin never heard from Ritz again. Sayin investigated the VIN number given by Ritz and found the car was registered to another party located in Colorado. Sayin contacted its bank, Regions, and asked that it rescind the wire transfer. Regions made that request to P. P discovered the parties involved and initiated an interpleader action for the $47,000. Greis and P settled, and Greis assigned all of its rights, title, and interest in the disputed funds to P - as well as any claims or defenses. P moved for summary judgment. D moved for summary judgment.