Scott v. NCNB Bank Corp.
Docket: Nos. 92-3611, 93-0944 and 93-1566
Court: District Court of Appeal of Florida; August 17, 1994; Florida; State Appellate Court
A portion of a final summary judgment favoring the defendant bank is reversed regarding the Appellant's claim of wrongful dishonor under section 674.402(2) of the Florida Statutes. Genuine issues of material fact exist concerning the bank's justification for freezing the Appellant's separate account and imposing a $100,000 setoff after paying her estranged husband from their joint account. Prior to the husband's withdrawal, a bank officer assured the Appellant that a new individual account would be created to protect her funds and that they would be transferred from the joint account, which was supported by a court order preventing her husband from transferring funds. Although the funds were transferred to the Appellant's account, the transfer was processed "off-line," leading to an overdraft on the joint account. The bank asserted its right to set off this overdraft against the Appellant's new account based on the depositor’s agreement, which allows for such actions. However, this setoff undermines the purpose of transferring her funds to a new account, raising questions regarding good faith, the legitimacy of the setoff, and the bank's due care in its actions related to the wrongful dishonor claim. The court affirmed the dismissal of the Appellant's claims for conversion, civil theft, and punitive damages. Additionally, the consolidated awards of attorney's fees and costs were reversed and remanded for further proceedings. The court noted that Florida Statutes section 658.61 (now 655.83) does not prevent a claimant from relying on notice of an adverse claim if the institution has voluntarily agreed to recognize it, referencing Griffin v. Gulf Life Ins. Co.