First Financial Bank, N.A. v. Citibank, N.A.
United States District Court for the Southern District of Indiana
2012 WL 3065546 (2012)
A client hired attorney Misty McDonald to collect a debt from Accurate Manufactured Products Group, Inc. (AMPG). AMPG gave McDonald a cashier’s check for nearly $300,000 from Citibank, N.A. (defendant), which McDonald deposited at First Financial Bank, N.A. (plaintiff). First Financial endorsed the check and sent it to Chase bank electronically for processing. The next day, Chase presented the check to Citibank, but the account number was not valid. Claiming First Financial’s endorsement was illegible, Citibank sent the nonpayment notice to Chase through the Electronic Advanced Return Notification System (EARNS). Chase received the notice the next morning and sent letters notifying First Financial by mail. Meanwhile, McDonald wired funds from her First Financial account to China. First Financial tried to reverse the wire, but the funds had already been paid out. First Financial sued Citibank, claiming it violated check-processing rules under Regulation CC of the Expedited Funds Availability Act and requested summary judgment holding Citibank liable for the loss.
Rule of Law
Holding and Reasoning (Lawrence, 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 724,000 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 724,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,600 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.