Texas Court Rules That Negligent Misrepresentation Claim Is Not Displaced By Article 4A Of The UCC

LexisNexis (January 9, 2019, 1:16 PM EST) -- In our prior story, we analyzed a recent Florida decision involving payment on a wire transfer that contained an obvious mismatch between the account name and account number. The beneficiary’s bank accepted the wire into an improper account but was exonerated by the court because the bank paid the item “by the numbers” and had no actual knowledge of the discrepancy. The Florida court dismissed the plaintiff”s common-law negligence theory on the ground that the loss-allocation rules of UCC Article 4A governed the rights and duties of the parties. The field was occupied by the statute. In short, the bank was protected by the principle of displacement....