Nature of the Case
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Facts
JD Services, Debtor, filed for reorganization on August 24th. On the 28th it deposited a check for $7,250 into a subsidiary account, and Bank of America (P) improperly coded the check for $725,000. Debtor then wired $800,000 to a new account at First Security. P noticed the error on September 5th. Debtor and First Security agreed to put a hold on the $717,750 overage. The court held that Debtor was unjustly enriched by the mistake and that the funds so held were in constructive trust for P. If the funds in the account were analyzed by the collected balance method, the lowest intermediate balance would be no less than $717,750. If analyzed by available balance the lowest intermediate balance would be no less than $394,460.17. The account balance may have dropped as low as $162,524.28. It is undisputed that at the end of the day on September 6th, the available balance was $394,460.47.
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