Logourl black
From our private database of 14,000+ case briefs...

Halifax Corporation v. Wachovia Bank

Supreme Court of Virginia
604 S.E.2d 403 (2004)


Facts

Beginning in 1999, May Adams, an officer of Halifax Corporation (Halifax) (plaintiff), fraudulently indorsed Halifax checks totaling $15.4 million to herself from Halifax’s account at First Union National Bank (First Union) (defendant). Adams stamped the checks with the Halifax president’s signature, made them payable to herself, and deposited them into her accounts at Wachovia Bank (Wachovia) (defendant). Adams deposited these checks in amounts ranging from $5,000 to $150,000 weekly or even daily. Wachovia employees took notice of Adams because of the large checks, but accepted the checks drawn on Halifax’s account despite knowing that Adams’ salary was only $1,000 per pay period and that these transactions could be indicative of fraud. Halifax filed suit against First Union and Wachovia. The trial court granted First Union’s motion for summary judgment. Halifax appealed, and the Supreme Court of Virginia affirmed. While the appeal had been pending, Halifax had filed a motion for judgment against Wachovia and First Union in trial court, claiming that (1) the defendants were liable for the embezzled funds and (2) based on Gina Chin & Associates, Inc. v. First Union Bank, 500 S.E.2d 516 (Va. 1998), Uniform Commercial Code (UCC) § 3-406 supported an affirmative cause of action for a depository bank’s negligence under circumstances where an instrument had been forged. Wachovia moved for summary judgment. The trial court granted the motion, concluding that no affirmative cause of action existed under § 3-406. Halifax appealed.

Rule of Law

The rule of law is the black letter law upon which the court rested its decision.

To access this section, please start your free trial or log in.

Issue

The issue section includes the dispositive legal issue in the case phrased as a question.

To access this section, please start your free trial or log in.

Holding and Reasoning (Carrico, J.)

The holding and reasoning section includes:

  • A “yes” or “no” answer to the question framed in the issue section;
  • A summary of the majority or plurality opinion, using the CREAC method; and
  • The procedural disposition (e.g. reversed and remanded, affirmed, etc.).

To access this section, please start your free trial or log in.

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 175,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 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.