Rusthoven v. TCF National Bank

Jeffrey Rusthoven (plaintiff) opened checking and savings accounts with TCF National Bank (TCF) (defendant) and received an ATM card to withdraw funds from his checking account. Rusthoven kept the PIN number for the ATM card in his wallet. Rusthoven had an outstanding warrant for his arrest. Accordingly, on January 30, 2006, the police arrested Rusthoven while he sat in his truck in a parking lot with his fiancé, Muzit Kubrom. Rusthoven agreed to allow Kubrom to drive his truck home to avoid having the truck towed. Kubrom had never driven the truck before. Rusthoven did not give Kubrom permission to continue driving the truck thereafter nor any instructions as to his personal items in the truck. Rusthoven left his wallet in the center console of the truck. Rusthoven never arranged to receive his mail while in prison. Upon his release on August 2, 2006, Rusthoven discovered that $27,785.08 had been withdrawn from his checking account, including money that had been transferred from his savings account to his checking account. The next day, Rusthoven notified TCF of these unauthorized withdrawals and transfers, which he believed Kubrom initiated. Thereafter, Rusthoven sued TCF and alleged that TCF’s failure to prevent this apparent theft violated the Electronic Fund Transfer Act (EFTA). TCF moved for summary judgment and argued that Kubrom effectively furnished Kubrom with access to his account by giving her control over his truck and its contents on the night of his arrest. TCF also argued that its liability should be limited because Rusthoven failed to report certain disputed transfers within 60 days of the transmittal of the bank statements reflecting the same.