Demelo v. U.S. Bank National Association, ___ F.3d ___, 2013 WL 4306747 (1st Cir. 2013)

Aug 16, 2013

OUTCOME: Dismissal of claims against bank client affirmed on appeal

Souza v. Bank of America, N.A., 2013 WL 3457185 (D. Mass.)

Jul 18, 2013

OUTCOME: Claims against bank client dismissed

Grassi Design Group, Inc., et al. v. Bank of America, N.A., et al., 74 Mass. App. Ct. 456, review denied, 454 Mass. 1108 (2009)

N/A

OUTCOME: Summary judgment for bank client affirmed

In that case, the Massachusetts Appeals Court affirmed the trial court’s entry of summary judgment in favor of the bank in a complex check fraud saga. The Grassi decision is significant because it mar ... ked the first instance in which an appellate court in Massachusetts had ruled on the “same wrongdoer” rule set forth in Uniform Commercial Code (“UCC”) § 4-406(d)(2) -- a key defense to many check fraud claims. The Appeals Court also made it clear that, in a check fraud case such as Grassi, the bank’s customer bears the burden of proving that the bank did not exercise “ordinary care” as that term is specifically defined in UCC § 3-103(a)(7).