Wesseling & Brackmann, Pc v. Huntington Bancshares Financial Corporation

Facts

Jason Walter contacted P through the Internet regarding legal services. Brackmann, an attorney and partner in P, responded and began communicating with through e-mail and telephone. Walter retained P's services, telling Brackmann that he wished to sell a drilling rig with the assistance of a Michigan attorney. P received a letter of intent outlining the terms of sale for the rig. The letter included a cashier's check in the amount of $380,000 made out to P and specified that $200,000 was to be wired to a company called JMS International, LLC. P deposited the check in its Interest on Lawyer Trust Account (IOLTA) with D. Walter provided Brackmann with instructions for completing the wire transfer, and Brackmann initiated a phone call with D to determine the status of the check. He spoke with bank teller Heidi J. McClintic, and asked if the check had cleared the account. Brackmann testified that McClintic explicitly answered: 'The check is cleared. You're good to go.' Based on McClintic's response, Brackmann completed the paperwork for the wire transfer. Brackmann learned that the check had been dishonored. D attempted to stop the wire transfer but $58,155.20 remained lost. P sued D, alleging that it should be liable for the unrecovered funds because it falsely represented that the fraudulent check had cleared. D moved for summary judgment in that UCC 4-207, barred recovery because P breached its warranty that the cashier's check it deposited was authentic, and D accepted the check in good faith. The court granted the motion holding that D acted in good faith because its employees engaged in commercially appropriate conduct, its employee gave P information that was technically accurate, and the bank made every effort to recover funds lost as a result of the fraudulent cashier's check accepted and deposited by P. P appealed. 

Issues

Rule of Law

Holding and Decision

Legal Analysis

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