Bank IV, Olathe v. Capitol Federal Savings & Loan Association
Kansas Supreme Court
828 P.2d 355, 250 Kan. 541 (1992)
While incompetent, Tillie A. Flinn executed a durable power of attorney making her nephew James C. Flanders and James’s wife, Martha E. Flanders, her attorneys-in-fact. The form, torn from a popular magazine, gave the attorneys-in-fact broad powers to manage Flinn’s finances regardless of Flinn’s competency. Less than two hours before Flinn’s death, Martha went to Capitol Federal Savings & Loan Association (Capitol) (defendant), presenting the durable-power-of-attorney form and a letter from Flinn stating that Flinn wanted to cash in certificates of deposit. The bank vice president, who did not know Flinn or Martha and who later testified transactions involving attorneys-in-fact were unusual, checked Martha’s identification, then compared Flinn’s signatures on the power-of-attorney form, Flinn’s letter, and the signature cards. Although Flinn’s signature had weakened, the vice president gave Martha over $100,000 in checks made out to Martha or Martha and James. Martha and James spent the money, which could not be recovered. Bank IV, Olathe (Olathe) (plaintiff), administrator of Flinn’s estate, filed suit against Capitol, alleging that Capitol had a duty to investigate the transaction’s circumstances and that Martha did not have the power to misappropriate. Capitol argued that because so many transactions involving a power of attorney occurred daily, a bank could not investigate each one. The trial court held that the Uniform Durable Power of Attorney Act (UDPAA), as adopted by Kansas, imposed no such duty on banks and granted summary judgment to Capitol. Olathe appealed.
Rule of Law
Holding and Reasoning (McFarland, J.)
Concurrence/Dissent (Abbott, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 710,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 710,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 44,600 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.