Collins v. First Union Nat. Bank

This record has been reviewed for basic accuracy, correcting any discovered errors.
Docket No. Op. Below Argument Opinion Author Term
052647 - - - - November 3, 2006 Russell 2006

Holding

his appeal presents the question whether a bank is liable to parties designated as beneficiaries of accounts set up for their benefit, using the term “For The Benefit Of ___” (FBO accounts), when the beneficiaries had not contracted with the bank and had no signatory authority over the accounts. The dispositive issues are whether the beneficiaries were “customers” of the bank as defined by the Uniform Commercial Code, Code § 8.4-104(a)(5), or whether the bank had otherwise assumed duties to protect their interests.