# U ni te d S ta te s Co ur t of A pp ea ls

For the Eig hth Circu it

__ __ __ __ __ __ __ __ __ __ __ __ __ _

No. 1 3- 21 84

__ __ __ __ __ __ __ __ __ __ __ __ __ _

Nati on al Uni on Fir e In su ran ce Co m pa ny of Pi tt sb ur gh , PA

ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el la nt

v.

Yvo nn e Rac zk ows ki

ll ll ll ll ll ll ll ll ll ll l Defe nd

an t

Hom et own Ban k, N.A.

ll ll ll ll ll ll ll ll ll ll l Defe nd

an t - Ap pe ll ee

XYZ Corp or at io n, 1 -5

ll ll ll ll ll ll ll ll ll ll l Defe nd

an t

v.

Hom et own Ban k, N.A.

ll ll ll ll ll ll ll ll ll ll l Th ir d Pa rt y Pla in ti ff - App el le e

Mar k Leo n Hen ry ; Leo n Hen ry ; Sh ei la Henr y ; J ul ie Bal ls ; St ev e Bal ls ; In ve st m en t
Cen te rs of Am eri ca, In c.; J ack Hower to n; Delb ert Ph ip ps ; Way ne Ro ffm an

ll ll ll ll ll ll ll ll ll ll l Th ir d Pa rt y Def en da nt s

__ __ __ __ __ __App eal fro m Uni te d S ta te s Di st ric t Co ur t fo r th e Weste rn Dis tri ct of M is so ur i - J op li n

__ __ __ __ __ __

Su bm it te d: Ju ne 12 , 20 14
Fil ed : Au gu st 13 , 20 14

__ __ __ __ __ __

Befo re MUR PHY, COLLOTO N, and KELLY , Cir cu it Ju dg es

.

__ __ __ __ __ __

KELLY, Cir cu it Ju dg e.

Thi s ca se st em s fr om

frau d c om m it te d b y

an in ve st m en t ad vi so r who op en ed

a do in g- bu si ne ss -as ("d /b /a ") ba nk acco un t us in g th e na m e of hi s em pl oyer whe n he

di d no t ha ve th e em

pl oyer's au th or it y to do so

. The in ve st m en t ad vi so r us ed th e d/ b/ a
ba nk a c c o u n t t o st eal m on ey fro m hi s em pl oyer's cu st om ers

. His em pl oyer se tt le d

wit h th e de frau de d cu st ome r s , a nd th e em pl oyer's in su ran ce co m

pa ny pa id th e

se tt le m en ts

. The in su ran ce co m pa ny th en br ou gh t th is su it ag ai ns t th e ba nk

, al le gi ng

th at th e ba nk act ed ne gl ig en tl y by fai li ng to in qu ire in to whe th er th e fo rm er ad vi so r

ha d au th or it y to op en th e d/ b/ a acco un t. The di st ric t co ur t gr an te d th e ba nk 's m ot io n 1

to di sm is s, con cl ud in g th at th e ba nk owe d no reco gn iz ed du ty to th e em pl oyer. W e

affi rm

.

I.

In 19 94

, Mar k Hen ry be ga n wor ki ng fo r In ve st m en t Cen te rs of Am eri ca, In c. ("I CA")

, whi ch pr o v i d e s in ve st m en t an d in su ran ce pr od uc ts

. ICA is in su red by

Nati on al Uni on Fir e In su ran ce Co m pa ny of Pi tt sb ur gh , P A ( "Nat io na l Uni on "), th e

The Hon or ab le Gary A. Fen ne r, Uni te d St at es Dis tri ct Ju dg e fo r th e W es te rn 1

Dis tri ct of M is so ur i.

-2

-ap pe ll an t. Hen ry wor ke d as an in ve st m en t ad vi so r an d ag en t fo r ICA in it s Cart ha ge ,

Mi ss ou ri, b ran ch off

ic e.

In Nov em

be r 20 04

, Hen ry op en ed a ba nk acco un t at Hom et o w n B a n k, N.A.
("Ho m et own Ban k" ), u n d e r th e na m e "M ark L. Hen ry d/ b/ a In ve st m en t Cen te rs of

Am eri ca." Hen ry di d no t ha ve ICA's pe rm is si on to op en th e acco un t, an d he was th e

acco un t's on ly si gn or

. Be c a u s e it was a d/ b/ a acco un t, Hom et own Ban k al lo wed

Hen ry to acce pt ch eck s m ad e ou t to ICA fro m ICA cu st om ers an d de po si t th em in to

th e Hom et own Ban k acco un t. Hen ry de po si te d ro ug hl y $2 92

, 0 0 0 f ro m ICA

cu st om ers in to th e acco un t. He la te r wit hd rew th is m on ey fo r pe rs on al us e. Hen ry 's 2

frau d was di sc ov ered in Aug us t 20 06

. ICA la te r se tt le d wit h th e de frau de d ICA

c u s t o m ers , an d Nati on al Uni on pa id cl ai m s on be ha lf of ICA be cau se ICA ha d a

po li cy wit h Nat io na l Un io n.

The on ly id en ti fic at io n Henry pr ov id ed to Hom et own Ban k to op en th e d/ b/ a

acco un t was a dr iv er's li cen se

. Ho met o w n Ban k cl ai m s it be li ev ed th at Hen ry was

se lf- em pl oyed an d act in g on hi s own be ha lf whe n it ch os e to op en th e d/ b/ a acco un t

fo r Hen ry

.

II.

Nati on al Uni on fil ed th is di ve rs it y cas e in th e W e s te rn Dis tri ct of Mi ss ou ri,

al le gi ng th at Hom et own Ban k co m m it te d ne gl ig en ce by no t co nf irming wit h ICA th at

Hen ry ha d th e au th or it y fro m ICA to op en th e d/ b/ a acco un t. Nati on al Uni on cl ai m s

th is cau se d ICA da m ag es res ul ti ng fro m ICA ha vi ng to se tt le wit h cu st om ers Hen ry
de frau de d. Th e d is tri ct co ur t g ran te d Ho m et own Ban k's m ot io n to di sm is s, fi nd in g

Hen ry al so m is ap pr op ria te d ICA cu st om er fu nd s in to hi s Hom et own pe rs on al 2

ba nk acco un t.

-3

-th at Hom et own Ban k owe d no du ty to ICA or Nati on al Uni on an d th eref or e Nati on al

Uni on fai le d t o s ta te a cau se of a ct io n. Nat io na l Un io n a pp eal s, an d we a ffi rm

.

III.

The pa rti es a g r e e M i ss ou ri la w ap pl ie s to th is di ve rs it y cas e. W e rev ie w a
di st ric t co ur t ' s g r a nt of a m ot io n to di sm is s de no vo

. Bel l v. Pfi zer, In c., 71 6 F.3 d

10 87

, 10 91 (8 th Ci r. 20 13 ). On rev ie w, we "'as su m e al l f a c t u a l al le ga ti on s in th e pl ead in gs are tru e an d in te rp ret th em in th e li gh t m os t fav or a b l e t o th e no nm ov in g

pa rty.'" Id

. (q uo ti ng Mu rp hy v. Aur or a Loa n Serv s., LLC, 69 9 F.3 d 10 27

, 10 33 (8 th

Ci r. 20 12 )). "To su rv iv e a m ot io n to di sm is s, a co m pl ai nt m us t co nt ai n su f

fic ie nt

fact ua l m at te r, acce pt ed as tru e, to 'st at e a cl ai m to rel ie f th at is pl au si bl e on it s face .'"

Ash cro ft v. Iq ba l, 55 6 U.S. 66 2, 67 8 (2 00 9) (q uo ti ng Bel l Atl an ti c Co rp

. v. Twom bl y , 55 0 U.S. 54 4, 57 0 (2 00 7) ). Gran ti ng a m ot io n to di sm is s is "ap pr op ria te on ly whe n

th ere is no di sp ut e as to an y m at er i a l f a ct s an d th e m ov in g pa rty is en ti tl ed to jud gm en t as a m at te r of

law." Ash le y

Cn ty., Ark. v . Pfiz er, In c., 55 2 F.3d 65 9, 6 65
(8 th Cir . 20 09 ).

To s ur vi ve th e m ot io n to di sm is s, Nati on al Uni on 's co m pl ai nt ag ai ns t

Hom et own Ban k m

us t st at e a cau se of act io n. In Mi ss ou ri

, " f or a pl ai nt iff to m ak e

a su bm is si bl e cas e of ne gl ig en ce, a pl ai nt iff m us t es ta bl is h th at th ere was a du ty an d

th at th e br each of th at du ty was th e pr ox im at e cau se of hi s in jury." Hof

fm an v. Uni on
Elec

. Co

., 17 6 S.W .3d 70 6, 70 8 ( M o. ba nc 20 05 ). "In co ns id eri ng whe th er a du ty

ex is ts in a pa rti cu la r cas e, a co ur t m us t weig h th e fo res ee a bi li ty of th e in jury, th e

li ke li ho od of th e in

jury, th e m ag ni tu de o f t h e b u r d e n of gu ard in g ag ai ns t it an d th e

co ns eq ue nc es of pl aci ng th at b u r d en on de fen da nt ." Id

. W he th er a du ty ex is ts is a

qu es ti on of l aw. Id.

-4

-The Mi ss ou ri Su pr em e Co ur t ha s n o t d e ci de d whe th er a ba nk ha s a du ty to

ve rif y th at an in di vi du al se ek in g to op en a d/ b/ a acco un t po ss es se s le ga l au th or it y to

us e a p art ic ul ar d /b /a na m e. W he n a st at e co ur t ha s n ot de ci de d a n i ss ue , th is co ur t

lo ok s "'t o rel ev an t st at e pr eced en t, an al og ou s de ci si on s, co ns id ered di ct a, an d an y

o t h er rel ia bl e da ta '" to de te rm in e ho w t he Mi ss ou ri Su pr em e Co ur t wou ld co n s t r u e

th e la w. Ash le y Cn ty., Ark

., 55 2 F.3 d at 66 5 (q uo ti ng In re W

. Io wa Lim es to ne , In c.,

53 8 F .3d 85 8, 8 66 (8t h C ir. 2 00 8) ).

A. Rela ti on sh ip Bet ween th e Par ti es

W he n an al y zi ng whe th er a du t y ex is ts

, Mi ss ou ri co ur ts st art "wi th an

ex am in at io n o f th e so ur ce o f th e d ut y ." Parr a v . Bld g. Erec ti on Serv s., 98 2 S .W .2d

27 8, 28 3 ( M o

. Ct

. App

. 19 98 ) (ci ta ti on om it te d)

. "Th e co m m on de no m in at or th at

m us t be pr es en t is th e ex is te nc e of a rel at io ns hi p be twee n th e pl ai nt iff an d de fen da nt

th at th e la w r eco gn iz es as th e ba si s of a du ty o f ca r e

. " I d. Hom et own Ban k po in ts

ou t t h a t I CA was ne ve r act ua ll y th e ba nk 's cu st om er be cau se Hen ry was m erel y an

im po st er po si ng as an ag en t of ICA. The refo re, th e ba nk arg ue s it n e v er ha d a
rel at io ns hi p wit h ICA th at wou ld im po se an y du ty on th e ba n k

. N a t i on al Uni on

arg ue s th at Hom et own Ban k be li ev ed it ha d a rel at io ns hi p wit h ICA, an d th at su ch

a be li ef is su ffi ci en t to es ta bl is h a rel at io ns hi p be twee n th e pa rti es th at co ul d se rv e as

th e so ur ce o f a d ut y

owed

.

Nati on al Uni on ci te s Pat ric k v. Uni on St at e Ban k, 68 1 So .2d 13 64 (Ala

. 19 96 ),

fo r su pp or t. In Pat ric k, an im po st er acq ui red Bri dg et te Pat ric k's te m po rary d riv er's

li cen se

. Id

. at 13 65

. The dr iv er's li cen se co nt ai ne d he r si gn at ur e, bu t di d no t ha ve he r ph ot og rap h. Id

. The im po st er op en ed a ba nk acco un t in Pat ric k's na m e. Id

. The

ba nk fai le d to as k fo r ot he r ph ot o id en ti fic a t i o n or ot he r id en ti fic at io n th at wou ld

co nf irm th e pe rs on op en in g th e acco un t was act ua ll y Pat ric k. Id

. The ba nk em pl oyee
di d, ho wev er, co m

p a r e th e si gn at ur e on th e te m po rary li cen se wit h th e im po st er's

si gn at ur e. Id

. The si gn at ur es di d no t m at ch

, bu t th e ba nk em pl oyee st il l op en ed th e

-5

-acco un t an d is su ed th e im po st er ch eck s. Id

. The im po st er th en wro te se ve ral ch eck s

ag ai ns t th e acco un t. Id

. at 13 66

. Pat ric k was ev en tu al ly arre st ed fo r w r i t i n g ba d

ch eck s. Id

. Sh e su ed th e ba nk

, arg ui ng th at th e ba nk ha d a du ty to co nf irm a pe rs on 's

id en ti ty befo re o pe ni ng a ba nk acco un t. Id

.

The A l a b a m a Su pr em e Co ur t he ld th at th e ba nk owe d Pat ric k a du ty of care
be cau se th e ba nk be li ev ed it ha d a rel at io ns hi p wi th Pat ric k. Th e co ur t reas on ed as

fo ll ows :

The ba nk un de ni ab ly th ou gh t th at it ha d a rel at io ns hi p wit h Ms

. Pat ric k
whe n it op en ed th e acco un t fo r, an d ga ve ch eck s to

, an im po st er; an d th e fact th at th e ba nk op en ed a ch eck in g acco un t un de r th e na m e "Br id ge tt e Lash awn Pat ric k," un de r Ms

. Pat ric k's So ci al Secu r i t y nu m be r, an d
ba se d so le ly up on th e pr es en ta ti on of Ms

. Pat ric k's te m po r a r y dr iv er's
l i cen se as id en ti fic at io n, pe rs ua de s us th at th ere is so m e rel at io ns hi p be twee n t he pa rti es

.

Id . at 1 36 9.

W e fin d P a t r i c k p e r su as iv e reg ard in g th e rel at iv e eas e of a ba nk 's ab il it y to

di sc ern th e id en ti ty of a na tu ral pe rs on

. Dis cern in g a pe rs on 's au th or it y to op en a
d/ b/ a acco un t us in g a pa rti cu la r na m e, ho wev er, is si gn ifi can tl y m or e di ffi cu lt

. Unl ik e a si tu at io n in vo lv in g a na tu ral pe rs on , who carr ie s st an da rd fo rm s of

id en ti fic at io n, com

pl ex la ws g ov ern rig ht s t o u se fic ti ti ou s n am es , lab el s, an d ot he r

en ti ty m on ik ers , m ak in g id en ti fic at io n a m uc h m or e di ffi cu lt en de av or fo r a b a nk

. Fu rth er, Pat ric k is so m ewh at of an ou tl ie r, an d ot he r co ur ts face d wit h th is is su e ha ve
he ld th at th ere is no rel at io ns hi p be twee n th e pa rti es th at co ul d es ta bl is h a du ty. See,

e

. g., Zab ka v. Ban k of Am eri ca Co rp ., 12 7 P.3 d 72 2, 72 4 (Wash

. Ct

. A p p

. 2 0 0 5 )
("M an y ot he r juri sd ic ti on s ha ve he ld th at th ird pa rty n on -cu st om ers are no t owe d a
du ty of care by a ba nk

, ab se nt a di rect rel at io ns hi p or st at ut or y du ty."); W ei l v. Fi rs t

Nat'l Ban k of Cas tl e Ro ck

, 98 3 P.2 d 81 2, 81 5 (Co lo

. App

. 19 99 ) (d ecl in in g "t o crea te

-6

-a ne w co m

m on la w du ty bu rd en in g ba nk s an d fin a n c i a l in st it ut io ns wit h a du ty to

in qu ire in to a cu st om er ' s a u t h o rit y to us e an un reg is te red tra de na m e") ; So ftwa re

Des ig n & App li cat io n, Ltd

. v. Hoe fer & Arn et t, In c., 56 Cal

. Rp tr. 2d 75 6, 76 0 (Cal

. Ct

. App

. 19 96 ) (ag reei ng wit h "[r ]ecent cas es [ t h at ] ha ve he ld th at ab se nt

ex tra or di na ry an d sp eci f i c fact s, a ba nk do es no t owe a du ty of care to a

no nc us to m er.")

.

Hom et own Ban k als o po in ts to Eis en be rg v. W ach ov ia Ban k, N.A

., 30 1 F.3d

2 2 0 ( 4 th Ci r. 20 02 ). In Eis en be rg , a m an op en ed a W ach ov ia ba nk acco un t i n h i s

na m e d /b /a Bear Ste arn s. Id . at 2 22 . He h ad no affi li at io n wi th Bear Ste rn s, b ut he

us ed th e acc ou nt to ob ta in fu nd s from vi ct im s who be li ev ed th ei r m on ey was g oi ng

to Bea r St earn s. Id

. One of th os e vi ct im s su ed W ach ov ia

, as se rti ng th at th e ba nk ha d

act ed ne gl ig en tl y by fai li ng to in ve st ig at e th e m an 's au th or it y to op en th e d/ b/ a Bea r

St ear n s a c c ou nt

. Id

. The Fo ur th Ci rcu it he ld th at th e vi ct im was a th ird pa rty wh o
di d no t ha ve a rel at io ns hi p wit h W ach ov ia

, so W ach ov ia di d no t owe hi m a du ty. Id

.
at 22 5 ("C ou rts in nu m ero us juri sd ic ti on s ha ve he ld th at a ba nk do es no t owe a du ty

of care to a no nc us to m er wit h who m th e ba nk ha s no di rect rel at io ns hi p." ). The co ur t

no te d th at ot he r cas es ha d al so reject ed th e no ti on th at a ba nk owe d a du ty to a no ncu st om er ev en whe n th at no n- cu st om er was th e pe rs on who se na m e was frau du le nt ly

us ed to op en th e acco un t. See id

. at 22 6. In Eis en be rg , th at pa rti cu la r no n- cu st om er

wou ld ha ve be en Bea r St earn s. The co ur t di d no t r e a c h th e qu es ti on of whe th er

W ach ov ia owe d a du ty to Bea r St earn s, bu t no ne th el es s st at ed it was "p ers ua de d by

th e reas on in g art ic ul at ed in th e n u mer ou s cas es ho ld in g th at a ba nk do es no t owe

no nc us to m ers a du ty of care ." Id . at 2 27

.

Hom et own Ban k be li ev ed it was en te rin g in to a rel at io ns hi p wit h an en ti ty

na m ed "In ve st m en t Cen te rs of Am eri ca." Howev er, wit ho ut an y Mi ss ou ri pr eced en t

on th is is su e an d th e weig ht of au t ho rit y su gg es ti ng th e co ur t sh ou ld no t reco gn iz e

a rel at io ns hi p be t w e e n t he pa rti es , we de cl in e to fin d th ere was a fid uc ia ry
rel at io ns hi p b et ween th e p art ie s.

-7

-B. Im po si ti on of a Dut y

Nati on al Uni on arg ue s th at

, ba se d on th e Mi ss ou ri Su pr em e Co ur t op in io n in

Dalt on & Mar

be rry , P.C. v. Nati on sb an k, N.A., 98 2 S.W .2d 23 1 (Mo

. ba nc 19 98 ), th e

Mi ss ou ri Su pr em e Co ur t wou ld reco gn iz e a b a n k 's du ty to as cert ai n a pe rs on 's

au th or it y fo r op en in g a d/ b/ a acco un t un de r a d/ b/ a na m e. W he th er th is arg um en t is

se pa rat e fro m th e rel at io ns hi p qu es ti on is un cl ear. W ha t is cl ear, ho wev er, is th at th e

th e d u t y a r t i cu la te d in Dalt on & Mar be rry was m at eri al ly di ffer en t an d li m it ed in

sc op e whe n co m

pa red to Nati on al Uni on 's su gg es te d du ty in th is cas e. It is al so cl ear

th at Dalt on & Mar

be rry il lu st rat es th e ne ed to ha ve so m e li mi t in g pr in ci pl e (fo r

ex am pl e, a cu st om er re la ti on sh ip ) in pl ace wh en reco gn iz in g a ne w du ty.

In Da l t o n & M arb erry, an acco un ti ng fir m st aff acco un ta nt wit hd rew bl an k

cas hi er's ch eck s fro m th e co m pa ny's acco un t wit h th e ba nk

. Dalt on & Mar be rry , 98 2

S.W .2d at 2 32 . The b an k fa il ed to in qu ire whet he r th e em pl oyee was au th or iz ed to

ob ta in th es e bl an k cas hi er's ch eck s. Id

. The em pl oyee us ed th e ch eck s to em be zzl e

m or e th an $1 30 ,00 0 ov er fiv e ye a r s

. I d

. The acco un ti ng fir m su ed th e ba nk fo r

ne gl ig en ce. Id

. The Mi ss ou ri Su pr em e Co ur t co nc lu de d th at th e "b an k can be li ab le

fo r fai li ng to in qu ire as to th e au th or it y " of th e em pl oyee. Id

. at 23 4. The co ur t st at ed

th at a "b an k is li ab le if it fai ls to in qu ire as to th e au th or it y of an ag en t of th e dr awerde po si to r who wron gf

ul ly div ert s t he pro ceed s o f a ch eck [.]" Id.

Dalt on & Mar

be rry es ta bl is he d th at ba nk s owe a du ty of in qu iry to cu st om ers ;
ho wev er, we de cl in e to ex te nd th at du ty fu rth er in th is cas e. In Dalt on & Mar be rry , th e act ua l acco un t ho ld er was a le ga l en ti ty an d no t a na tu ral pe rs on —s pe ci fic al ly, a

pr of es si on al co rp or at io n was th e ba nk 's act ua l cu st om er an d th e pl ai nt iff in th e act io n

as se rti n g n eg li ge nc e cl ai m s. Id

. at 23 2. Su ch le ga l en ti ti es m ay m ai nt ai n ba nk

acco un ts

, an d it is st an da rd pr act ic e fo r ba nk s to p erm it cert ai n au th or iz ed pe rs on s

act in g as rep res en ta ti ve s of th e le ga l en ti ty to wit hd raw m on ey or writ e ch eck s on

-8

-b e h a lf of th e le ga l en ti ty. It is ha rd ly s ur pr is in g, th en , t ha t Mi ss ou ri fo un d t h a t t h e
ba nk ne gl ig en tl y br each ed a du ty to it s own cu st om er/ acco un t ho ld er (a le ga l ent it y
wit h whi ch th e ba nk in di sp ut ab ly h ad a rel at io ns hi p) by fail in g t o c he ck or v eri fy a

pu rp or te d rep res en ta ti ve 's au th or it y

. See id

. at 23 4. In Dalt on & Mar be rry , th e ba nk

an d t h e acco un t ho ld er ha d a rel at io ns hi p, th e sc op e of th e ba nk 's du ty to ve rif y a

rep res en ta ti ve 's a ut ho rit y was e as il y

de fin ed an d nar ro w in sc op e, an d t he na tu re o f

th e br each of th at du ty was ro ot ed in an d co n s is te nt wit h th e la w of ne go ti at ed

in st ru m en ts in Mi ss ou ri.

In th e cu rren t cas e, Nati on al Uni on su gg es ts th at Hom et own Ban k ha d a du ty

to in ve st ig at e whe th er ICA ha d gi ve n Hen ry th e au th or it y to op en th e d/ b/ a acco un t.

Th i s p r o p o s e d du ty i s no t li ke th e on e in Pat ric k, whe re th e co ur t sa id a ba nk ha s a
du ty to in qu ire in to th e id en ti ty of a pe rs on op en in g a ba nk acco un t, whi ch is typic al ly

eas y to as cert ai n. See Pat ric k, 68 1 So .2d at 13 66

. Thi s pr op os ed du ty is al so no t li ke 3

th e Mi ss ou ri Su pr em e Co ur t's art ic ul at io n of th e du ty of in qu iry in Dalt on &

Mar be rry , whe re th e co ur t sa id th at a ba nk al so ha s a du ty to in qu ire in to th e au th or it y
of a bo ok ke ep er to wit hd raw cas hi er's ch eck s fro m a bu si ne ss 's acco un t. 98 2 S.W .2d

at 23 4. Rat he r, Nati on al Uni on 's su gg es ti on th at Hom et own Ban k in ve stiga te Hen ry 's

au th or it y to us e th e na m e "In ve st m en t Cen te r s o f A mer ic a" is br oa d in sc op e an d

ad m it s of no pr act ic al li m it at io n. W e are he si ta nt to reco gn iz e su ch a du ty in an y

ev en t an d a re p art ic ul arl y he si ta nt to reco gn iz e su ch a du ty in th e he av il y reg ul at ed

an d s ta tu to ry

lad en fie ld s o f ba nk in g a nd ne go ti at ed in st ru m en ts

.

Alt ho ug h Nati on al Uni on su gg es ts Hom et own Ban k sh ou ld ha ve ve rif ie d wit h

ICA Hen ry 's au th or it y to us e th e na m e, it is no si m pl e m at te r to id en ti fy who ex act ly

ho ld s rig ht s in a na m e, tra de m ark , or t rad e n am e. And , Nati on al Uni on pr of fers no

In th is cas e, fo r in st an ce, Hom et own Ban k ve rif ie d Mar k Hen ry 's id en ti ty by 3

lo ok in g a t h is dri ve r's li cen se

.

-9

-e x p l a n a t i on as to whe re th e as se rte d du ty m ig ht en d. Ess en ti al ly, if we fo ll ow e d 4

Nati on al Uni on 's pr op os al , we wou ld be req ui rin g Hom et own B a n k t o v eri fy , a s to

th e wor ld at l a r g e , whe th er th ere were an y en ti ti es id en ti cal ly or si m il arl y na m ed

"In ve st m en t Cen te rs of Am eri c a , " an d on ce th os e en ti ti es ha d be en as cert ai ne d,

whe th er Hen ry ha d th e au th or it y fro m an y of th os e en ti ti es to op en th e d/ b/ a acco un t.

The sc op e of th is du ty co ul d be pa rti cu la rly bu rd en so m e in so m e cas es , an d im po si ng

th e du ty m ay no t ev en ge ne rat e th e res ul t Nati on al Uni on s e e k s be cau se sm al l

di ffer en ces , su ch as na m e or lo cat io n di ffi cu lt ie s, m ay pre ve nt a ba nk 's sear ch fro m

ev en lo cat in g th e co rrec t d/ b/ a en ti ty. Th e Co lo rad o Co ur t of App eal s refu se d to

reco gn iz e a si m il ar du ty in W ei l, 98 3 P.2d at 81 5, and th e Fo ur th Cir cu it reject ed a
si m il ar du ty in Eis en be rg , 30 1 F.3 d at 22 6. Im po rta nt ly, ou r reject io n of su ch an il lde fin ed an d po te nt ia ll y br oa d du ty i s co ns is te nt wit h t he Mi ss ou ri S up rem e Co ur t's

fo cu s on th e "m ag ni tu de of th e bu rd en " as a f a c t o r to co ns id er whe n as se ss in g th e

ex is te nc e o f a d ut y . Hoffm an , 17 6 S .W .3d at 7 08

.

W e m us t ap pl y th e la w as we be li ev e th e Mi ss ou ri Su pr em e Co ur t wou ld

, se e
Ash le y Cn ty., Ark

. , 5 5 2 F.3 d at 66 5, an d we are no t co nv in ced th at th e Mi ss ou ri

Su pr em e Co ur t wou ld ex te nd th e du ty art ic ul at ed in Dalt on & Mar be rry to co ve r th e

Not ab ly, at or al arg um en t, N a ti on al Uni on 's co un se l co ul d no t art ic ul at e 4

ex act ly ho w th e ba nk co ul d fu lfi ll th is du ty. Nati on al Uni on cl ai m s th at Hom et own Ban k co ul d h a v e ( 1 ) co nt act ed so m eo ne ot he r th an Hen ry at ICA to ve rif y Hen ry 's

au th or it y ; (2 ) req ui red a res ol ut io n fro m ICA t h a t H en ry ha d au th or it y to op en th e

acco un t; or (3 ) co n t a c t e d th e Mi ss ou ri Secr et ary of St at e's of fic e to co nf

irm th at
Hen ry was reg is te red to do bu si ne ss as "In ve st m en t Cen te rs of Am eri ca." Howev er, it rem ai ns un cl ear wha t ex act ly th e sc op e of th at in qu iry in to th e id en ti ty of th e d/ b/ a

en ti ty sh ou ld be

. Fu rth er, we no te th at ICA's fo rm al na m e is "In ve st m en t Cen te rs of

Am eri ca, In c." an d th at Hen ry 's d/ b/ a acco un t om it te d th e "In c." It is po s s i bl e, th eref or e, th a t N a t io na l Uni on is su gg es ti ng th e pr op os ed du ty en co m pa ss ev en

en ti ti es wit h si m il ar, bu t no t ex act

, na m es , fu rth er ex pa nd in g th e br ead th of a se arch
th e ba nk wou ld be req ui red to un de rta ke

. W hi le Hom et own Ban k m ay ha ve do ne

m or e, we m ay no t ba se ou r reco gn it io n of a le ga l du ty up on wha t, in hi nd si gh t, m ig ht
ha ve be en pru de nt for th e b an k t o h av e d on e in a pa rti cu la r in st an ce.

-1 0-m is us e of th e d/ b/ a acco un t in th is cas e. The bu rd en of im po si ng th is il l-d efi ne d an d

un di sp ut ed ly br oa d du ty is si m pl y to o gr eat in th is co nt ex t. See Hof fm an , 17 6

S.W .3d at 7 08

.

IV.

W e aff irm th e jud gm en t o f th e d is tri ct co ur t.

__ __ __ __ __ __ __ __ __ __ __ __ __ __ __

-1 1-