Newsroom - January 2009
A Federal District Judge issued a well–reasoned opinion holding that because the Georgia Commercial Code provides a specific framework for addressing forged endorsement claims, common law claims of negligence, failure to exercise ordinary care, and conversion are preempted and subject to dismissal. In addition, the Court barred the claim by a noncustomer attacking the manner in which a customer/forger's account was opened. This is the first authority in Georgia speaking so clearly in favor of UCC Articles 3 and 4 preemption of common law claims.
The opinion was rendered in a matter in which the Firm represents a bank client in defense of a significant forged endorsement claim. Trish Treadwell prepared the briefs for our client and it was very excited by the victory and plans to use the good opinion in all states where it conducts business. We have shared the good authority with our other bank clients who expressed their gratitude for Parker Hudson's good work on behalf of the financial industry.