Which of the following was the result on appeal in Fernando Tatis v.U.S.Bancorp,the case in the textbook in which the plaintiff,a major-league baseball player,asked that the defending bank hold his bank statements and failed to notify the bank within thirty days of forgeries by one of his employees?

A) By agreeing to hold the bank statements,the bank implicitly agreed to waive any timely notice of forgeries.
B) Regardless of when notice was received,the plaintiff-depositor was entitled to the return of funds released based on forgeries.
C) Pursuant to the principle of comparative negligence,the plaintiff-depositor and the bank would be required to split losses on an equal basis because they were both at fault.
D) The plaintiff-depositor could not recover for forgeries made and not reported for more than thirty days after the bank statements were made available.
E) The plaintiff-depositor could not recover because the forgeries were not reported within thirty days of when the bank statements were made available,and by not timely reporting the first forgery,the plaintiff-depositor lost all rights to recover funds lost because of forgeries by the same forger.

Question

Vivianna Luthanen · Accepted Answer

Final Answer : E, Explanation :  According to the United States Court of Appeals for the Sixth Circuit,the plaintiff-depositor (Tatis)did not have the right to recover funds from the bank.When the account was opened,Tatis was notified by the terms and conditions he received that he had only thirty days after the bank statements became available to report any unauthorized signatures or alterations.Although Tatis was not given the statements directly,they were made available to him and held at the location that he had requested.By not reporting the first forgery that appeared on the first bank statement,Tatis lost rights to all subsequent funds that were taken.As a result of payments being made on the checks previously written by Tatis's employee,the bank could claim that Tatis had failed to report that the employee was not an authorized signatory on the account.Hence,even after Tatis noticed the forgeries,he was not able to recover any funds.

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