Marquess v. Pennsylvania State Employees Credit Union

William Marquess opened a bank account with the Pennsylvania State Employees Credit Union (PSECU) (defendant) in the name of his son, Jason Marquess (plaintiff). William opened the account without telling Jason and by forging Jason’s signature. William subsequently forged Jason’s signature to make William a joint accountholder and again to authorize electronic funds transfers from the account to an account owned by William’s son, David Marquess. Upon William’s death, the account held approximately $25,000. David then impersonated Jason to trick the PSECU into providing him with the account’s personal identification number and online banking password, permitting David to steal the $25,000. Jason discovered these events when he received notice that he owed inheritance tax on the joint account. After the PSECU refused to return the stolen money, Jason and William’s estate (plaintiff) sued the PSECU for, among other things, violating the Electronic Fund Transfer Act. The district court found for Jason with respect to the act. The PSECU appealed, arguing that the act applied only if there was an electronic funds transfer (EFT) services agreement between it and Jason or William and that no such agreement existed because William signed a purported agreement using Jason’s name and forged signature. Jason responded that the PSECU ratified an EFT services agreement with Jason after William’s death by treating Jason as the account owner.