Court Won't Dismiss Claims Against HSBC Bank in Jewelry Theft Case
In a split decision, a majority Appellate Division, First Department, panel has decided that HSBC, which issued a crucial credit reference letter on behalf of a thieving jewelry dealer, must continue to face the two causes of action, which should not be dismissed.
January 03, 2019 at 06:20 PM
7 minute read
A lawsuit levied against HSBC Bank on claims of aiding and abetting fraud and conversion—allegedly helping to lead to the theft of $425,750 worth of watches and jewelry auctioned off to a scheming dealer—must go forward, a state appeals court has ruled.
In a split decision, a majority Appellate Division, First Department, panel has decided that HSBC, which issued a credit reference letter on behalf of the jewelry dealer, must continue to face the two causes of action—and they should not be dismissed—in part because the “HSBC letter clearly represented to plaintiff [an auctioneer and appraiser auctioning the items] that [jewelry dealer Brett] Stettner's accounts contained a minimum of $1,000,000, an amount that was specific, and that was sufficient to cover Stettner's $425,750.00 check” that later bounced.
“The letter was thus a statement of existing fact, as opposed to a 'nonactionable opinion' or 'a prediction as to future performance,'” the majority panel, composed of Justices Rosalyn Richter, Angela Mazzarelli, Ellen Gesmer and Peter Moulton, wrote, quoting FMC v. Fleet Bank.
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