Logourl black
From our private database of 14,200+ case briefs...

Dawda, Mann, Mulcahy & Sadler, P.L.C. v. Bank of America, N.A.

United States District Court for the Eastern District of Michigan
62 F. Supp.3d 651 (2014)


Facts

Kenneth Flaska defrauded his former law firm Dawda, Mann, Mulcahy & Sadler, P.L.C. (Dawda) (plaintiff). Specifically, Flaska drew checks from Dawda’s IOLTA account and deposited them into his personal account at Bank of America, N.A. (defendant). Dawda had no business relationship with and was not indebted to Bank of America. In total, Bank of America deposited over $500,000 into Flaska’s personal account from Dawda’s IOLTA account. Dawda brought suit against Bank of America in Oakland County Circuit Court. Dawda claimed that Bank of America was negligent in its failure to discharge the common-law duty of inquiry. Bank of America removed the case to the United States District Court for the Eastern District of Michigan. Bank of America argued that it was a holder in due course of the checks and, as a result, that the duty of inquiry did not apply. Bank of America filed a motion to dismiss the claim.

Rule of Law

Issue

Holding and Reasoning (Berg, J.)

What to do next…

  1. 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 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. 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. Read more about Quimbee.

Here's why 251,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,200 briefs, keyed to 189 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.