Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

Pedersen v. MidFirst Bank

Bank Receiving Transmitted Funds Lacked Duty to Reverse Payment Order, Freeze Account

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MEMORANDUM DECISION AND ORDER I. Introduction Plaintiffs Alan Pedersen and Nancy Pedersen bring this action against defendants MidFirst Bank and Property ID Title Company, alleging various claims relating to an apparent wire transfer fraud perpetrated against plaintiffs. (Dkt. No. 43, 2d Am. Compl.) Pending is MidFirst’s motion to dismiss, (Dkt. No. 23), and a joint motion seeking dismissal of Property ID from the action, filed by plaintiffs and Property ID, (Dkt. No. 48). For the reasons that follow, both motions are granted. II. Background A. Facts1 At the time relevant to this litigation, plaintiffs maintained separate bank accounts at Tompkins Trust Company and M&T Trust Company. (2d Am. Compl. 14.) In September 2019, plaintiffs executed a contract to purchase real estate located in Florida for $665,000. (Id. 23.) A few days prior to the closing date, plaintiffs received emails, which appeared to be from their escrow agent, instructing plaintiffs to wire escrow funds, in the amount of $128,745.35, to MidFirst, in the name of “PROPERTY I.D. TITLE COMPANY TRUST ACCOUNT.” (Id.

26-27.) Believing these instructions to be legitimate, plaintiffs went to the Ithaca branches of Tompkins and M&T and requested that each bank transmit wires in the amount of $64,372.68 and $64,372.67, respectively, to the Property ID account at MidFirst. (Id. 28.) The wire transfers were completed on October 17, 2019, and, on that same day, the proceeds were deposited into the Property ID account at MidFirst. (Id.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
British Legal Awards 2024
November 27, 2024
London

Celebrating achievement, excellence, and innovation in the legal profession in the UK.


Learn More
GlobeSt. Healthcare Real Estate 2024
December 02, 2024 - December 03, 2024
Scottsdale, AZ

Join the industry's top owners, investors, developers, brokers and financiers for the real estate healthcare event of the year!


Learn More
ThinkAdvisor LUMINARIES Awards 2024
December 11, 2024
Las Vegas, NV

This event shines a spotlight on how individuals and firms are changing the investment advisory industry where it matters most.


Learn More
Go to Events Go to Webcasts
INTELLECTUAL PROPERTY PROSECUTION PARALEGAL

INTELLECTUAL PROPERTY PROSECUTION PARALEGAL - NEW JERSEY OR NEW YORK OFFICESProminent mid-Atlantic law firm with multiple regional office lo...


Apply Now ›
ATTORNEY - REMOTE - NEW YORK

Experienced Insurance Defense Attorney.No in office requirement.Send resume to:


Apply Now ›
Associate Justice- Appellate Division, Palau Supreme Court

The Republic of Palau Judiciary is seeking applicants for one Associate Justice position who will be assigned to the Appellate Division of ...


Apply Now ›
Go to Lawjobs