Non-Customers Cannot Sue for Negligence On Wire Transfers, N.J. Supreme Court Says

A divided New Jersey Supreme Court Sept. 30 said non-customers cannot sue banks for common-law negligence after alleging wrongful handling of a corporate fund transfer (ADS Assocs. Grp., Inc. v. Oritani Savings Bank, 2014 BL 270943, N.J., A-114-11, 9/30/14).

The case, filed in 2006, marks the first time that New Jersey appellate courts have addressed whether non-customers who claim damages from fund transfers may sue a bank under a common law negligence theory independently of Article 4A of the Uniform Commercial Code.

In its Sept. 30 decision, the court’s majority said that allowing the suit by plaintiff Brendan ...