113 A.3d 234
Me.2015Background
- Mark Chartier and Lisa Heward held a joint checking account at Gorham Savings Bank; account terms authorized the bank to honor checks or withdrawals by any named account holder and to follow directions of any joint owner.
- Chartier purchased a $100,000 Farm Family annuity in 2006 and later named Heward primary beneficiary.
- In 2009 Heward forged Chartier’s signature on the annuity-cashout form, obtained a $109,669.49 check payable to Chartier, and mailed it to Chartier’s home.
- Heward deposited the check into the joint account (check bore no Chartier indorsement but was rubber-stamped “For Deposit Only”), then withdrew $40,000 and soon thereafter sought a divorce.
- Chartier sued Farm Family, agent Joseph Miller, and Gorham Savings Bank for breach of fiduciary duty, breach of the implied covenant of good faith and fair dealing, and negligence; the trial court granted summary judgment for all defendants, and Chartier appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Bank breached the implied covenant of good faith by accepting and depositing Chartier’s unindorsed check into the joint account | Chartier: Bank improperly accepted an instrument payable to him without his indorsement, violating U.C.C. negotiation rules and good-faith duties | Bank: As the depositary bank, it could accept an unindorsed check under U.C.C. § 4-205; account contract also authorized deposits/withdrawals by any joint owner | Court: Bank entitled to summary judgment — statute and account terms permitted acceptance without indorsement |
| Whether an independent cause of action exists for breach of the implied covenant outside contract/U.C.C. obligations | Chartier: asserted independent claim for failure to perform/enforce in good faith | Defendants: No independent action recognized; U.C.C. governs and imposes good-faith duties in contract performance/enforcement | Court: Declined to recognize independent cause; analyze under U.C.C./contractual standards |
| Whether the deposit constituted improper negotiation under U.C.C. § 3-1201(2) | Chartier: instrument payable to an identified person requires indorsement to negotiate, so deposit was improper | Defendants: Other U.C.C. provisions (§ 4-205) allow depositary bank to become holder without indorsement when customer delivers item for collection | Court: § 4-205 controls here; bank could be holder without Chartier’s indorsement |
| Whether disputed facts preclude summary judgment | Chartier: factual disputes about consent and bank conduct should defeat summary judgment | Defendants: Statutory scheme and undisputed account terms resolve legal issue; no genuine material factual dispute | Court: No genuine issue of material fact; summary judgment affirmed |
Key Cases Cited
- Lubar v. Connelly, 86 A.3d 642 (Me. 2014) (standard for viewing summary judgment record and construing facts for nonmoving party)
- Beal v. Allstate Ins. Co., 989 A.2d 733 (Me. 2010) (summary judgment entitlement standard)
- Corey v. Norman, Hanson & DeTroy, 742 A.2d 933 (Me. 1999) (plaintiff’s burden to present prima facie case opposing summary judgment)
- Niedojadlo v. Cent. Me. Moving & Storage Co., 715 A.2d 934 (Me. 1998) (definition and components of good faith under U.C.C.)