Following a medical malpractice case, Victoria Newsome was left unable to manage her affairs. A conservatorship was
Question:
Following a medical malpractice case, Victoria Newsome was left unable to manage her affairs. A conservatorship was set up by attorney Keely McNulty, with Victoria’s mother, Marilyn, designated as the conservator. Chris Dunn, an employee of People’s Bank, helped Marilyn set up a checking account for the conservatorship. McNulty began the process of building a house for Victoria on behalf of the conservatorship. To pay subcontractors and herself, McNulty instructed the bank to issue cashier’s checks and withdraw the money from the conservatorship account. These checks were usually signed by Dunn; Marilyn’s signature did not appear on any of the checks. Marilyn was never informed of any of this; she eventually complained to Dunn that she was not receiving her monthly account statement and she was told to consult McNulty. Over $400,000 was transferred out of the conservatorship account, allegedly without the knowledge or consent of Marilyn. When Marilyn finally discovered what was going on, she sued the Bank and Dunn, arguing they were liable for failing to require her signature on any of the checks negotiated on the conservatorship account. Do you agree with Marilyn that the Bank and Dunn should be held liable? Why or why not?
Step by Step Answer:
Dynamic Business Law
ISBN: 9781260733976
6th Edition
Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs