Title: Retha J. Brannon, as executrix of the estate of Lemuel Morrison, deceased v. BankTrust, Inc.
Citation: N/A
Docket Number: 1060637
State: Alabama
Issuer: Alabama Supreme Court
Date: April 23, 2010

REL: 04/23/2010 
Notice: 
T h i s 
o p i n i o n i s s u b j e c t t o f o r m a l 
r e v i s i o n b e f o r e 
p u b l i c a t i o n i n 
t h e advance 
s h e e t s o f 
Southern Reporter. 
R e a d e r s a r e 
r e q u e s t e d t o n o t i f y t h e 
Reporter of Decisions, 
Alabama A p p e l l a t e C o u r t s , 300 D e x t e r Avenue, Montgomery, Alabama 36104-3741 
((334) 229¬
0 6 4 9 ) , o f 
any 
t y p o g r a p h i c a l o r 
o t h e r e r r o r s , i n 
o r d e r t h a t c o r r e c t i o n s may 
be 
made b e f o r e 
t h e o p i n i o n i s 
p r i n t e d i n 
Southern Reporter. 
SUPREME COURT OF ALABAMA 
OCTOBER TERM, 2009-2010 
1060637 
Retha J . Brannon, as e x e c u t r i x o f the e s t a t e 
of Lemuel M o r r i s o n , 
deceased 
v. 
BankTrust, 
I n c . 
1061059 
BankTrust, 
I n c . 
v. 
Retha J . Brannon, as e x e c u t r i x o f the e s t a t e 
of Lemuel M o r r i s o n , 
deceased 
1060637 a n d 1061059 
Appeals from M o b i l e C i r c u i t 
Court 
(CV-04-1458) 
On A p p l i c a t i o n s f o r R e h e a r i n g 
MURDOCK, J u s t i c e . 
T h i s C o u r t ' s o p i n i o n o f J u l y 3 1 , 2009, i s 
w i t h d r a w n , a n d 
t h e 
f o l l o w i n g o p i n i o n i s s u b s t i t u t e d 
t h e r e f o r . 
R e t h a J . B r a n n o n , as e x e c u t r i x o f t h e e s t a t e o f L e m u e l 
M o r r i s o n , 
d e c e a s e d ( " t h e M o r r i s o n 
e s t a t e " ) , t h e 
p l a i n t i f f 
b e l o w , a p p e a l s f r o m a j u d g m e n t as a m a t t e r o f l a w i n f a v o r o f 
B a n k T r u s t , 
I n c . ( " B a n k T r u s t " ) , 
on t h e M o r r i s o n 
e s t a t e ' s 
common-law t o r t c l a i m s o f n e g l i g e n c e 
a n d w a n t o n n e s s ( c a s e no. 
1 0 6 0 6 3 7 ) . 
B a n k T r u s t c r o s s - a p p e a l s 
f r o m a summary j u d g m e n t i n 
f a v o r o f B r a n n o n on t h e M o r r i s o n 
e s t a t e ' s 
c l a i m o f b r e a c h o f 
c o n t r a c t 
( c a s e no. 1 0 6 1 0 5 9 ) . 
We r e v e r s e 
b o t h j u d g m e n t s . 
I . 
F a c t s a n d P r o c e d u r a l 
H i s t o r y 
M o r r i s o n 
d i e d i n M a r c h 2 0 0 1 , a n d B r a n n o n was 
a p p o i n t e d 
e x e c u t r i x o f h i s e s t a t e . 
A f t e r h e r a p p o i n t m e n t as e x e c u t r i x , 
B r a n n o n 
r e t a i n e d 
D o u g l a s 
McCoy o f t h e l a w f i r m o f Hand 
A r e n d a l l , L L C , t o a s s i s t h e r i n t h e a d m i n i s t r a t i o n o f t h e 
M o r r i s o n 
e s t a t e . 
B e c a u s e Hand A r e n d a l l 
m a i n t a i n e d 
i t s own 
a c c o u n t a t B a n k T r u s t a n d h a d r e g u l a r l y done b u s i n e s s w i t h i t , 
2 
1060637 a n d 1061059 
McCoy recommended t h a t B r a n n o n open a c h e c k i n g a c c o u n t f o r t h e 
M o r r i s o n 
e s t a t e a t B a n k T r u s t . 
On J u n e 26, 2 0 0 1 , B r a n n o n a n d 
McCoy met w i t h L y n P e t e r s o n , a v i c e p r e s i d e n t o f B a n k T r u s t , 
and 
B r a n n o n o p e n e d a c h e c k i n g 
a c c o u n t ( " t h e e s t a t e 
a c c o u n t " ) 
by 
f i l l i n g o u t an i n f o r m a t i o n 
s h e e t a n d s i g n i n g a 
s i g n a t u r e 
c a r d . 
A t t a c h e d t o t h e s i g n a t u r e c a r d was a document 
e n t i t l e d 
" D e p o s i t 
A c c o u n t 
Terms a n d C o n d i t i o n s " ( " t h e a g r e e m e n t " ) , 
w h i c h p r o v i d e d 
t h a t t h e " t e r m s [ o f 
t h e a g r e e m e n t ] g o v e r n [ e d ] 
t h e o p e r a t i o n o f t h i s a c c o u n t u n l e s s s u p p l e m e n t e d i n w r i t i n g . " 
The 
a g r e e m e n t s p e c i f i e d 
t h a t , 
" [ u ] n l e s s o t h e r w i s e 
c l e a r l y i n d i c a t e d on t h e a c c o u n t 
r e c o r d s , 
any one 
o f you who 
s i g n s 
t h i s 
f o r m 
i n c l u d i n g 
a u t h o r i z e d 
s i g n e r s , 
may 
w i t h d r a w 
o r 
t r a n s f e r 
a l l o r any p a r t o f t h e a c c o u n t b a l a n c e a t 
any 
t i m e 
E a c h 
[ s i g n a t o r y ] a u t h o r i z e s 
e a c h 
o t h e r p e r s o n 
s i g n i n g t h i s 
f o r m t o e n d o r s e any i t e m 
p a y a b l e t o you o r y o u r 
o r d e r 
f o r d e p o s i t t o 
t h i s 
a c c o u n t o r any o t h e r 
t r a n s a c t i o n w i t h 
[ B a n k T r u s t ] . " 
The a g r e e m e n t a l s o p r o v i d e d 
t h a t t h e s i g n a t o r y on t h e a c c o u n t 
must r e v i e w b a n k s t a t e m e n t s w i t h " r e a s o n a b l e 
p r o m p t n e s s " a n d 
must " p r o m p t l y n o t i f y " B a n k T r u s t o f any " u n a u t h o r i z e d 
p a y m e n t s 
o r a l t e r a t i o n s . " 
The a g r e e m e n t p r o v i d e d , i n a d d i t i o n t o 
t h e 
f o r e g o i n g , t h a t no c l a i m f o r an u n a u t h o r i z e d 
t r a n s a c t i o n c o u l d 
be made more 
t h a n 60 d a y s b e y o n d t h e d a t e 
B a n k T r u s t made 
3 
1060637 a n d 1061059 
a v a i l a b l e 
t o t h e 
s i g n a t o r y 
a 
s t a t e m e n t 
r e f l e c t i n g 
t h a t 
t r a n s a c t i o n . 
The 
s i g n a t u r e 
c a r d 
c o n t a i n e d 
s p a c e s 
f o r 
m u l t i p l e 
s i g n a t o r i e s , b u t i t 
i s u n d i s p u t e d 
t h a t B r a n n o n was t h e o n l y 
p e r s o n 
whose 
name 
a p p e a r s 
on t h e 
s i g n a t u r e 
c a r d 
as a 
s i g n a t o r y . 
The s i g n a t u r e 
c a r d 
a l s o 
i n c l u d e d t h e o p t i o n f o r 
m a k i n g an " a g e n c y d e s i g n a t i o n , " b u t no s u c h d e s i g n a t i o n was 
made on t h e s i g n a t u r e 
c a r d . 
A l t h o u g h McCoy's name does n o t a p p e a r on t h e s i g n a t u r e 
c a r d , 
P e t e r s o n 
t e s t i f i e d b y d e p o s i t i o n t h a t B r a n n o n t o l d h e r 
t h a t 
"Doug 
[ M c C o y ] w o u l d 
h a n d l e 
t h i s 
a c c o u n t 
f o r h e r . " 
B r a n n o n 
i n s t r u c t e d 
P e t e r s o n 
t o s e n d 
c h e c k s f o r t h e e s t a t e 
a c c o u n t 
t o McCoy, a n d she 
l i s t e d t h e m a i l i n g 
a d d r e s s as 
" E s t a t e o f L e m u e l M o r r i s o n , c/o D o u g l a s L. M c C o y , " f o l l o w e d b y 
Hand A r e n d a l l ' s m a i l i n g a d d r e s s . 
I t 
i s 
u n d i s p u t e d 
t h a t McCoy 
i n i t i a l l y r e c e i v e d a l l 
b a n k s t a t e m e n t s f o r 
t h e e s t a t e 
a c c o u n t 
and t h a t he h a d a r e s p o n s i b i l i t y t o B r a n n o n t o f o r w a r d them t o 
h e r . 
On A p r i l 17, 2002, McCoy t e l e p h o n e d P e t e r s o n a t B a n k T r u s t 
and 
t o l d h e r 
t o t r a n s f e r $34,821.73 f r o m t h e e s t a t e a c c o u n t t o 
Hand A r e n d a l l ' s a c c o u n t a t B a n k T r u s t . 
P e t e r s o n 
t e s t i f i e d t h a t 
4 
1060637 and 1061059 
McCoy t o l d h e r t h a t t h e t r a n s f e r was f o r l e g a l 
f e e s and 
t h a t 
he s a i d n o t h i n g 
e l s e . 
P e t e r s o n 
d i d n o t a s k McCoy i f he h a d 
a u t h o r i z a t i o n f r o m B r a n n o n f o r t h e t r a n s f e r , a n d McCoy d i d n o t 
t e l l 
P e t e r s o n 
t h a t 
he 
h a d 
s u c h 
a u t h o r i z a t i o n . 
T h e i r 
c o n v e r s a t i o n 
l a s t e d l e s s t h a n one m i n u t e . 
P e t e r s o n 
t e s t i f i e d 
t h a t 
she " a s s u m e d " 
t h a t 
McCoy 
h a d 
a u t h o r i z a t i o n 
f o r t h e 
t r a n s f e r and t h a t 
she t r u s t e d M c C o y .
1 
T h e r e a f t e r , 
i n May, 
J u n e , J u l y , A u g u s t , S e p t e m b e r , and O c t o b e r 2002, McCoy 
p l a c e d 
s i m i l a r t e l e p h o n e c a l l s t o P e t e r s o n and o b t a i n e d 
t r a n s f e r s o f 
v a r y i n g 
amounts 
f r o m t h e e s t a t e 
a c c o u n t t o Hand 
A r e n d a l l ' s 
a c c o u n t . 
I n a l l , e i g h t 
s e p a r a t e 
t r a n s f e r s f r o m t h e 
e s t a t e 
a c c o u n t t o Hand A r e n d a l l ' s a c c o u n t , t o t a l i n g $ 2 4 0 , 1 8 5 . 1 9 , were 
made a t McCoy's 
d i r e c t i o n . 
I n O c t o b e r 2002, B r a n n o n t e l e p h o n e d 
P e t e r s o n 
t o 
i n f o r m 
h e r 
t h a t she h a d n o t b e e n r e c e i v i n g b a n k s t a t e m e n t s on t h e 
e s t a t e a c c o u n t , and she a s k e d P e t e r s o n 
t o c h a n g e t h e a d d r e s s 
on 
t h e 
a c c o u n t . 
B r a n n o n 
c l a i m s 
t h a t , 
upon 
r e c e i v i n g 
a 
p r i n t o u t 
o f t h e b a n k s t a t e m e n t s 
f r o m 
P e t e r s o n , 
she 
n o t i c e d 
t h a t 
a 
l a r g e 
amount 
o f money was 
m i s s i n g 
f r o m t h e 
e s t a t e 
a c c o u n t . 
She t e l e p h o n e d P e t e r s o n t o i n f o r m h e r t h a t t h e r e h a d 
1 P e t e r s o n 
t e s t i f i e d t h a t she h a d known McCoy f o r 19 y e a r s 
and 
t h a t he h a d b e e n h e r n e x t - d o o r n e i g h b o r f o r 5 o r 6 y e a r s . 
5 
1060637 and 1061059 
b e e n u n a u t h o r i z e d 
t r a n s f e r s f r o m t h e e s t a t e 
a c c o u n t t o Hand 
A r e n d a l l , 
and she a s k e d t o s p e a k t o P e t e r s o n ' s 
s u p e r v i s o r . 
P e t e r s o n 
t r a n s f e r r e d B r a n n o n t o B a n k T r u s t ' s 
c h i e f 
f i n a n c i a l 
o f f i c e r , 
M i c h a e l 
J o h n s o n . 
B r a n n o n demanded 
t h a t 
B a n k T r u s t 
c r e d i t t h e m i s s i n g f u n d s t o t h e e s t a t e a c c o u n t . 
J o h n s o n 
t o l d 
B r a n n o n t h a t he w o u l d g e t b a c k t o h e r . 
J o h n s o n 
t e s t i f i e d 
t h a t , 
a f t e r 
he 
r e c e i v e d 
B r a n n o n ' s 
t e l e p h o n e 
c a l l , he t e l e p h o n e d M c C o y
2 f o r l e g a l a d v i c e on how 
t o 
h a n d l e 
t h e 
s i t u a t i o n b e c a u s e 
McCoy 
a l s o 
was 
one 
o f 
B a n k T r u s t ' s 
a t t o r n e y s .
3 
McCoy 
p r o v i d e d 
J o h n s o n 
w i t h 
" s u g g e s t i o n s " 
f o r 
how t o r e s p o n d t o B r a n n o n ' s i n q u i r y . 
McCoy 
t h e n d r a f t e d a r e s p o n s e t o B r a n n o n , w h i c h J o h n s o n p r i n t e d on 
B a n k T r u s t ' s l e t t e r h e a d and s i g n e d as t h e a u t h o r . 
J o h n s o n s e n t 
t h e 
l e t t e r t o B r a n n o n on J a n u a r y 2 1 , 2003, e x p l a i n i n g t h a t t h e 
t r a n s f e r s 
w e r e 
c a r r i e d 
o u t 
b y 
P e t e r s o n 
on 
McCoy's 
i n s t r u c t i o n s . 
The 
l e t t e r 
a d v i s e d 
B r a n n o n 
t h a t 
" [ s ] i n c e 
[ B a n k T r u s t ] knew o f y o u r c l o s e f i d u c i a r y r e l a t i o n s h i p w i t h Mr. 
2 J o h n s o n a d m i t t e d 
t h a t he h a d known McCoy on a 
p e r s o n a l 
b a s i s f o r 25 y e a r s b e c a u s e McCoy's w i f e i s one o f J o h n s o n ' s 
c o u s i n s . 
3 J o h n s o n a d m i t t e d t h a t he knew t h a t McCoy a l s o s e r v e d as 
t h e 
a t t o r n e y f o r t h e M o r r i s o n 
e s t a t e . 
6 
1060637 and 1061059 
McCoy, we assumed ... 
t h a t h i s i n s t r u c t i o n s t o us w e r e known 
t o 
y o u . " 
Upon r e c e i v i n g t h e l e t t e r , B r a n n o n went t o t h e B a n k T r u s t 
o f f i c e and a g a i n r e q u e s t e d t h a t t h e e s t a t e a c c o u n t be 
c r e d i t e d 
f o r what 
she deemed t o be McCoy's u n a u t h o r i z e d 
t r a n s f e r s . 
Upon B a n k T r u s t ' s r e f u s a l , B r a n n o n 
c l o s e d t h e a c c o u n t . 
I n 
O c t o b e r 
2003, B r a n n o n 
s u e d 
B a n k T r u s t 
i n t h e G e n e v a 
C i r c u i t 
C o u r t ; t h e 
c o m p l a i n t 
a l l e g e d 
b r e a c h 
o f 
c o n t r a c t , 
n e g l i g e n c e , and w a n t o n n e s s , 
s t e m m i n g f r o m t h e e i g h t 
t r a n s f e r s 
o f f u n d s f r o m t h e e s t a t e a c c o u n t t o Hand A r e n d a l l ' s 
a c c o u n t 
b e t w e e n A p r i l and O c t o b e r 2 0 0 2 .
4 
F o l l o w i n g a c h a n g e o f v e n u e 
f r o m G e n e v a C o u n t y 
t o M o b i l e C o u n t y , 
B a n k T r u s t a n s w e r e d 
t h e 
c o m p l a i n t , a s s e r t i n g , among o t h e r t h i n g s , t h a t B r a n n o n h a d n o t 
t i m e l y r e v i e w e d t h e e s t a t e a c c o u n t ' s s t a t e m e n t s o r 
n o t i f i e d 
B a n k T r u s t 
o f t h e 
a l l e g e d p r o b l e m s 
w i t h t h e a c c o u n t . 
Among 
o t h e r t h i n g s , B a n k T r u s t 
c i t e d t h e p r o v i s i o n s o f A r t i c l e 4 o f 
t h e U n i f o r m C o m m e r c i a l Code ( " t h e U C C " ) , c o d i f i e d a t § 7-4-101 
e t s e q .
5 
4A 
c l a i m o f c o n s p i r a c y a l s o was 
a l l e g e d , b u t t h a t 
c l a i m 
s u b s e q u e n t l y was 
v o l u n t a r i l y d i s m i s s e d by 
B r a n n o n . 
5 S e c t i o n 7-4-406, A l a . Code 1975, a d d r e s s e s t h e n e c e s s i t y 
o f a bank c u s t o m e r ' s 
t i m e l y r e v i e w i n g a c c o u n t s t a t e m e n t s 
and 
n o t i f y i n g t h e b a n k o f p r o b l e m s 
w i t h t h e a c c o u n t . 
7 
1060637 and 1061059 
D u r i n g d i s c o v e r y , 
B a n k T r u s t 
f i l e d 
a n o t i c e o f i n t e n t t o 
s e r v e a s u b p o e n a on a n o n p a r t y , Hand A r e n d a l l . 
The 
n o n p a r t y 
s u b p o e n a r e q u e s t e d a l l 
s t a t e m e n t s , r e c o r d s o f p a y m e n t , n o t e s , 
memoranda, and c o r r e s p o n d e n c e r e l a t e d t o t h e M o r r i s o n e s t a t e 
and d i r e c t e d t o o r r e c e i v e d f r o m B r a n n o n . 
B r a n n o n o b j e c t e d t o 
t h e n o n p a r t y s u b p o e n a . 
B a n k T r u s t c o n t e n d e d t h a t i t n e e d e d t h e 
i n f o r m a t i o n 
t o d e m o n s t r a t e 
t h a t B r a n n o n 
owed money t o Hand 
A r e n d a l l f o r l e g a l s e r v i c e s McCoy h a d r e n d e r e d t o t h e M o r r i s o n 
e s t a t e . 
I n 
a memorandum 
o f 
l a w 
r e s p o n d i n g 
t o 
B r a n n o n ' s 
o b j e c t i o n t o B a n k T r u s t ' s n o n p a r t y s u b p o e n a t o Hand A r e n d a l l , 
B a n k T r u s t 
a l s o 
s t a t e d 
t h a t 
i t " a s s e r t s 
as a 
f a c t u a l 
m a t t e r 
t h a t i t made t h e t r a n s f e r f r o m t h e [ e s t a t e ] a c c o u n t t o Hand 
A r e n d a l l ' s 
a c c o u n t w i t h t h e u n d e r s t a n d i n g t h a t t h e 
t r a n s f e r s 
were a u t h o r i z e d 
by [ B r a n n o n ] . "
6 
6 S u b s e q u e n t l y , 
i n a m o t i o n 
t o c o m p e l 
a r e s p o n s e t o i t s 
" F i r s t R e q u e s t f o r P r o d u c t i o n o f D o c u m e n t s , " B a n k T r u s t 
a r g u e d 
t h a t 
t h e 
i n f o r m a t i o n 
i t s o u g h t " w o u l d 
r e v e a l 
t h e e x t e n t o f 
[ B r a n n o n ' s ] 
k n o w l e d g e 
c o n c e r n i n g 
t h e 
t r a n s f e r s 
f r o m 
t h e 
[ e s t a t e ] a c c o u n t ; w h e t h e r [ B r a n n o n ] a u t h o r i z e d e a c h t r a n s f e r ; 
and when [ B r a n n o n ] f i r s t 
e i t h e r knew o r s h o u l d h a v e known t h e 
t r a n s f e r s were t a k i n g p l a c e , 
a l l 
o f w h i c h i s r e l e v a n t t o t h e 
i s s u e w h e t h e r t h e t r a n s f e r s were a u t h o r i z e d o r u n a u t h o r i z e d i n 
t h e 
f i r s t 
i n s t a n c e 
and w h e t h e r 
[ B r a n n o n ] has d i s c h a r g e d h e r 
d u t y 
o f 
r e v i e w i n g 
h e r 
b a n k 
s t a t e m e n t s 
w i t h 
' r e a s o n a b l e 
p r o m p t n e s s . ' " 
8 
1060637 and 
1061059 
B r a n n o n o b j e c t e d 
t o t h e s u b p o e n a on 
t h e g r o u n d t h a t 
t h e 
s u b p o e n a 
r e q u e s t e d 
i n f o r m a t i o n 
p l a i n l y 
p r o t e c t e d 
by 
t h e 
a t t o r n e y - c l i e n t 
p r i v i l e g e u n d e r R u l e 502, 
A l a . R. 
E v i d . 
She 
a l s o a r g u e d t h a t any e v i d e n c e i n d i c a t i n g t h a t B r a n n o n may 
h a v e 
owed money 
t o 
Hand 
A r e n d a l l 
was 
n o t 
r e l e v a n t , 
she 
s a i d , 
b e c a u s e 
t h e 
t r a n s f e r 
was 
an 
" u n a u t h o r i z e d 
t r a n s f e r , " 
and 
A r t i c l e 
4A 
o f 
t h e 
UCC 
(§ 7-4A-201 e t 
s e q . , 
A l a . Code 1 975) 
p r o v i d e s d e f e n s e s f o r s u c h t r a n s f e r s o n l y i n t h e e v e n t a b a n k 
has 
i n p l a c e c e r t a i n s e c u r i t y m e a s u r e s , w h i c h , she 
c o n t e n d e d , 
B a n k T r u s t d i d n o t h a v e .
7 B a n k T r u s t r e s p o n d e d t h a t B r a n n o n 
had 
" w a i v e d 
any 
p r i v i l e g e 
she 
may 
h a v e b e e n 
a b l e 
t o 
i n v o k e 
i n 
c o n n e c t i o n 
w i t h 
b i l l i n g 
and 
l e g a l 
f e e s 
f r o m Hand A r e n d a l l , 
L L C [ , ] 
s i n c e 
she 
has 
a c c u s e d 
[ B a n k T r u s t ] 
o f m a k i n g 
i m p r o p e r 
p a y m e n t s o f t h o s e 
b i l l s . " 
On 
November 
24, 
2004, 
t h e 
t r i a l 
c o u r t 
q u a s h e d 
t h e 
s u b p o e n a , f i n d i n g t h a t t h e r e q u e s t e d 
i n f o r m a t i o n was 
p r o t e c t e d 
by t h e a t t o r n e y - c l i e n t p r i v i l e g e and t h a t " [ w ] h e t h e r [ B r a n n o n ] 
7 B r a n n o n 
t o o k 
t h e 
p o s i t i o n 
i n 
t h e 
t r i a l 
c o u r t 
t h a t 
A r t i c l e 4 g o v e r n e d o n l y " n e g o t i a b l e i n s t r u m e n t s " 
and 
t h a t 
t h e 
f u n d s 
t r a n s f e r s d i d 
n o t 
c o n s t i t u t e n e g o t i a b l e 
i n s t r u m e n t s . 
She 
p o i n t e d 
t o 
A r t i c l e 
4A 
as 
s u p p o r t 
f o r 
t h i s 
a s s e r t i o n , 
n o t i n g 
i t s a p p l i c a b i l i t y 
t o 
f u n d s 
t r a n s f e r s ; h o w e v e r , 
she 
a r g u e d , f o r r e a s o n s e x p l a i n e d i n t h e t e x t b e l o w , t h a t 
A r t i c l e 
4A d i d n o t 
d i s p l a c e h e r common-law c l a i m s 
i n t h i s 
p a r t i c u l a r 
c a s e . 
9 
1060637 and 1061059 
owed t h e money t o [ t h e M o r r i s o n 
e s t a t e ' s ] 
f o r m e r l a w f i r m i s 
n o t r e l e v a n t o r m a t e r i a l t o t h e i s s u e o f w h e t h e r t h e t r a n s f e r 
[ o f f u n d s ] i n t h e 
f i r s t 
i n s t a n c e was 
u n a u t h o r i z e d . " 
On 
December 
17, 
2004, 
B a n k T r u s t 
f i l e d 
a 
m o t i o n 
t o 
r e c o n s i d e r 
t h e 
t r i a l 
c o u r t ' s 
o r d e r 
q u a s h i n g 
t h e 
n o n p a r t y 
s u b p o e n a . 
I n 
t h i s 
m o t i o n , 
i t a r g u e d 
t h a t 
i n a d d i t i o n 
t o 
d e m o n s t r a t i n g 
t h a t 
B r a n n o n 
owed money t o Hand A r e n d a l l 
and 
t h a t 
she 
h a d 
r e c e i v e d 
t h e b a n k 
s t a t e m e n t s 
f o r t h e 
e s t a t e 
a c c o u n t 
f r o m 
McCoy, 
t h e 
i n f o r m a t i o n 
r e q u e s t e d 
f r o m 
Hand 
A r e n d a l l 
a l l e g e d l y 
c o u l d 
"be 
u s e d 
t o 
e s t a b l i s h 
t h a t 
Ms. 
B r a n n o n ' s 
c l a i m 
t h a t 
t h e 
t r a n s f e r s 
were 
u n a u t h o r i z e d 
i s 
f a l s e . " 
B r a n n o n ' s r e s p o n s e t o t h e m o t i o n t o r e c o n s i d e r 
s t a t e d 
t h a t B a n k T r u s t ' s UCC 
A r t i c l e 4 d e f e n s e w o u l d n o t work b e c a u s e 
A r t i c l e 4 d e a l s w i t h n e g o t i a b l e 
i n s t r u m e n t s , 
w h i l e t h e a c t i o n s 
a t i s s u e were t r a n s f e r s o f f u n d s made by t e l e p h o n e . 
I n May 2005, B r a n n o n 
f i l e d a m o t i o n f o r a p a r t i a l summary 
j u d g m e n t on h e r b r e a c h - o f - c o n t r a c t 
c l a i m . 
She a r g u e d t h a t t h e 
s i g n a t u r e 
c a r d 
c r e a t e d 
a c o n t r a c t b e t w e e n h e r and 
B a n k T r u s t 
t h a t 
B a n k T r u s t 
h a d 
b r e a c h e d 
by 
c a r r y i n g 
o u t 
u n a u t h o r i z e d 
t r a n s f e r s f r o m t h e e s t a t e a c c o u n t t o Hand A r e n d a l l ' s 
a c c o u n t 
and t h a t t h e M o r r i s o n 
e s t a t e h a d b e e n damaged as a r e s u l t 
o f 
10 
1060637 and 1061059 
B a n k T r u s t ' s 
a c t i o n s . 
The 
t r i a l 
c o u r t 
s e t t h e m o t i o n 
f o r a 
h e a r i n g 
on A u g u s t 
12, 2005. 
On 
A u g u s t 
9, 
2005, 
B a n k T r u s t 
f i l e d 
a r e s p o n s e 
t o 
t h e 
m o t i o n . 
I n i t s r e s p o n s e , 
B a n k T r u s t 
a r g u e d 
t h a t 
a summary 
j u d g m e n t 
s h o u l d 
n o t be 
e n t e r e d 
f o r B r a n n o n b e c a u s e 
g e n u i n e 
i s s u e s 
o f 
m a t e r i a l 
f a c t 
e x i s t e d 
as 
t o w h e t h e r 
B r a n n o n 
had 
p e r f o r m e d h e r d u t i e s and o b l i g a t i o n s u n d e r t h e a g r e e m e n t 
and, 
s p e c i f i c a l l y , w h e t h e r she had f a i l e d t o e x a m i n e t h e s t a t e m e n t s 
f o r 
t h e 
e s t a t e 
a c c o u n t 
w i t h 
r e a s o n a b l e 
p r o m p t n e s s 
and 
t o 
n o t i f y 
B a n k T r u s t 
o f any 
p r o b l e m s 
w i t h 
t h e 
s t a t e m e n t s . 
I n 
B a n k T r u s t ' s 
" M o t i o n 
t o 
C o n t i n u e 
A r g u m e n t 
and 
R e s p o n s e 
t o 
[ B r a n n o n ' s ] 
M o t i o n f o r P a r t i a l Summary J u d g m e n t , " 
B a n k T r u s t 
a r g u e d : 
" A t 
a 
minimum, 
i t 
w i l l 
be 
p r o v e n , 
upon 
c o m p l e t i o n o f d i s c o v e r y , 
t h a t 
[a] $100,000 t r a n s f e r 
was 
i n d e e d 
a u t h o r i z e d 
and 
g r a n t i n g 
[ B r a n n o n ' s ] 
M o t i o n f o r P a r t i a l Summary Judgment w o u l d 
u n j u s t l y 
e n r i c h 
[ B r a n n o n ] 
and 
w o u l d 
t h e r e f o r e 
r e s u l t i n a 
w i n d f a l l 
t o 
h e r . 
[ B a n k T r u s t ] 
has 
b e e n 
u n a b l e 
t o 
o b t a i n 
d i s c o v e r y 
t h a t 
i s b e l i e v e d 
w i l l 
e s t a b l i s h 
a u t h o r i z a t i o n by Ms. B r a n n o n o f a l l 
t h e t r a n s f e r s a t 
i s s u e . " 
F u r t h e r m o r e , i n an 
a f f i d a v i t 
a t t a c h e d 
t o t h i s m o t i o n , 
G i n g e r 
D. 
J o h n s o n , 
a l a w y e r who 
i d e n t i f i e d 
h e r s e l f as 
r e p r e s e n t i n g 
B a n k T r u s t , 
t e s t i f i e d as 
f o l l o w s : 
11 
1060637 and 1061059 
"2. 
B a n k T r u s t ' s N o t i c e o f I n t e n t t o S e r v e 
N o n p a r t y 
Subpoena 
on 
Hand 
A r e n d a l l , 
LLC, 
was 
s e r v e d 
on 
J u n e 15, 2004. 
... 
"3. 
[ B r a n n o n ] 
f i l e d 
an 
O b j e c t i o n 
t o t h e 
N o n - p a r t y 
Subpoena t o Hand A r e n d a l l , LLC on J u n e 2 1 , 2004, and 
B a n k T r u s t 
f i l e d 
a r e s p o n s e t o t h e same on 
J u l y 
9, 
2004. 
These i s s u e s were a r g u e d b e f o r e t h e C o u r t on 
November 19, 2004. 
T h i s H o n o r a b l e C o u r t 
s u s t a i n e d 
[ B r a n n o n ' s ] 
o b j e c t i o n 
t o t h e i s s u a n c e o f t h e 
non-
p a r t y s u b p o e n a on November 24, 2004, and 
B a n k T r u s t 
s u b s e q u e n t l y 
f i l e d M o t i o n t o R e c o n s i d e r t h e C o u r t ' s 
r u l i n g 
on December 
17, 
2004. 
S u b s e q u e n t 
t o 
t h a t 
d a t e , 
t h e 
i s s u e s were 
f u l l y 
a r g u e d 
and 
b r i e f e d 
by 
t h e 
p a r t i e s . 
S i n c e t h a t t i m e , t h e m o t i o n has b e e n 
u n d e r s u b m i s s i o n . 
"4. 
As 
a 
r e s u l t 
o f 
t h e 
d i s c o v e r y 
d i s p u t e s , 
t h e 
r e s o l u t i o n o f w h i c h a r e u n d e r 
s u b m i s s i o n w i t h 
t h i s 
C o u r t , 
[ B a n k T r u s t ] does n o t h a v e t h e 
f o l l o w i n g : 
"(A) 
I n t e r r o g a t o r y a n s w e r s 
and 
r e s p o n s e s 
t o 
t h e 
R e q u e s t 
f o r 
P r o d u c t i o n 
f r o m 
[ B r a n n o n ] ; 
"(B) 
The 
d e p o s i t i o n o f [ B r a n n o n ] ; 
"(C) 
The d e p o s i t i o n o f S t e p h a n i e 
E l l r i c h , 
[ B r a n n o n ' s ] 
CPA; 
"(D) 
R e s p o n s e s 
t o 
t h e 
C i v i l 
Subpoena 
r e q u e s t e d by 
[ B a n k T r u s t ] t o be 
s e r v e d 
on 
Hand A r e n d a l l , 
LLC; 
" ( E ) 
The d e p o s i t i o n o f D o u g l a s McCoy; 
... 
"5. 
B a n k T r u s t 
b e l i e v e s 
t h a t 
t h e 
t r a n s f e r s 
were 
a u t h o r i z e d 
by 
[ B r a n n o n ] 
b u t 
has 
n o t b e e n 
a b l e 
t o 
engage i n d i s c o v e r y on t h a t and 
r e l a t e d 
i s s u e s 
and 
t h e r e f o r e 
i s 
n o t 
a b l e 
t o 
a d e q u a t e l y 
r e s p o n d 
t o 
[ B r a n n o n ' s ] m o t i o n f o r p a r t i a l summary j u d g m e n t a t 
t h i s p o i n t i n t i m e . " 
12 
1060637 and 1061059 
As 
p l a n n e d , 
t h e 
t r i a l 
c o u r t 
h e a r d 
o r a l 
a r g u m e n t s 
on 
B r a n n o n ' s 
m o t i o n f o r 
a p a r t i a l summary j u d g m e n t on A u g u s t 12, 
2005. 
The 
t r i a l 
c o u r t 
d e n i e d 
B a n k T r u s t ' s 
r e q u e s t f o r a 
c o n t i n u a n c e and g r a n t e d B r a n n o n ' s m o t i o n f o r 
a p a r t i a l summary 
j u d g m e n t as t o h e r b r e a c h - o f - c o n t r a c t c l a i m . 
On 
A u g u s t 
18, 
2005, 
t h e 
t r i a l 
c o u r t 
r e c e i v e d , 
u n s o l i c i t e d , 
a 
l a r g e 
e n v e l o p e 
f r o m Hand 
A r e n d a l l 
f o r t h e 
C o u r t ' s 
i n c a m e r a 
r e v i e w . 
B o t h 
p a r t i e s 
o b j e c t e d t o t h e 
s u b m i s s i o n , and t h e t r i a l c o u r t r e t u r n e d t h e e n v e l o p e t o Hand 
A r e n d a l l w i t h o u t e x a m i n i n g i t s c o n t e n t s . On A u g u s t 24, 2005, 
an 
a t t o r n e y 
f r o m 
Hand 
A r e n d a l l 
d e l i v e r e d 
t o 
B a n k T r u s t ' s 
c o u n s e l 
an 
a f f i d a v i t 
f r o m 
McCoy 
w i t h 
d o c u m e n t s 
a t t a c h e d . 
B a n k T r u s t 
f i l e d t h e a f f i d a v i t 
and d o c u m e n t s , p u r p o r t e d l y t o 
s u p p l e m e n t 
i t s 
o p p o s i t i o n t o B r a n n o n ' s 
m o t i o n f o r a 
p a r t i a l 
summary 
j u d g m e n t . 
I n t h e 
a f f i d a v i t , 
McCoy 
a v e r r e d 
t h a t 
B r a n n o n h a d a u t h o r i z e d h i m t o make t h e t r a n s f e r s and 
s t a t e d 
t h a t 
t h e 
a t t a c h m e n t s 
t o 
t h e 
a f f i d a v i t 
d o c u m e n t e d 
t h a t 
a u t h o r i z a t i o n . 
B r a n n o n 
f i l e d a m o t i o n t o s t r i k e t h e a f f i d a v i t 
and a t t a c h m e n t s as u n t i m e l y f i l e d . 
S u b s e q u e n t l y , 
B a n k T r u s t 
f i l e d 
a m o t i o n 
f o r a summary 
j u d g m e n t 
on 
B r a n n o n ' s 
t o r t 
c l a i m s . 
13 
1060637 and 
1061059 
The 
t r i a l 
c o u r t 
h e l d 
a h e a r i n g 
on 
t h e 
v a r i o u s 
p e n d i n g 
m o t i o n s , 
and 
on 
J u l y 
31, 
2006, 
i t i s s u e d 
a 
w r i t t e n 
o r d e r 
a f f i r m i n g 
i t s g r a n t i n g 
o f 
B r a n n o n ' s 
m o t i o n 
f o r 
a 
p a r t i a l 
summary j u d g m e n t , 
d e n y i n g B a n k T r u s t ' s m o t i o n 
f o r 
a summary 
j u d g m e n t , and g r a n t i n g B r a n n o n ' s m o t i o n t o s t r i k e 
B a n k T r u s t ' s 
f i l i n g o f t h e McCoy a f f i d a v i t and i t s a t t a c h m e n t s as 
u n t i m e l y . 
C o n c e r n i n g B r a n n o n ' s b r e a c h - o f - c o n t r a c t 
c l a i m , t h e 
t r i a l 
c o u r t 
s p e c i f i c a l l y f o u n d t h a t B a n k T r u s t " a l l o w e d 
a n o n - s i g n a t o r y 
t o 
t r a n s f e r 
money 
f r o m 
t h e 
[ e s t a t e ] 
a c c o u n t 
i n t o 
t h e 
non-
s i g n a t o r y ' s b a n k a c c o u n t " ; t h a t " t h e 
s i g n i n g o f t h e 
s i g n a t u r e 
c a r d 
c r e a t e s 
a b i n d i n g 
c o n t r a c t 
on 
t h e 
p a r t i e s " ; 
and 
t h a t 
" [ t ] h e e i g h t s e p a r a t e 
t r a n s a c t i o n s ... were u n a u t h o r i z e d 
u n d e r 
t h e 
t e r m s 
o f 
t h e 
c o n t r a c t , 
i . e . , t h e 
s i g n a t u r e 
c a r d , 
and 
c o n s t i t u t e d 
a 
b r e a c h 
o f 
[ B a n k T r u s t ' s ] 
c o n t r a c t 
w i t h 
[ B r a n n o n ] . " 
The 
t r i a l 
c o u r t 
n o t e d 
t h a t 
t h e 
t r a n s f e r s were 
c a r r i e d 
o u t 
by 
t e l e p h o n e 
and 
t h a t 
t h e y 
d i d 
n o t 
i n v o l v e 
n e g o t i a b l e 
i n s t r u m e n t s . 
"Thus, 
[ B a n k T r u s t ' s ] a s s e r t i o n o f 
§ 
7-4-406, 
Code 
o f 
A l a b a m a , 
1975, 
as 
a 
s p e c i a l d e f e n s e 
i s 
i n a p p l i c a b l e i n t h i s c a s e . 
See A l a . Code § 7-4A-104, 
O f f i c i a l 
Comment." 
The 
t r i a l 
c o u r t a w a r d e d B r a n n o n t h e amount o f 
t h e 
14 
1060637 and 
1061059 
t r a n s f e r s 
p l u s 
p r e j u d g m e n t 
i n t e r e s t a t 
6% 
p e r annum, f o r 
a 
t o t a l j u d g m e n t o f $ 2 9 4 , 5 5 2 . 3 7 . 
B a n k T r u s t 
f i l e d 
a m o t i o n t o 
a l t e r , amend, o r v a c a t e 
t h e 
j u d g m e n t , 
a r g u i n g 
t h a t 
u n d e r 
§ 
7-4A-202, 
A l a . 
Code 
1975, 
B r a n n o n was 
n o t 
e n t i t l e d 
t o i n t e r e s t on 
any 
o f t h e 
t r a n s f e r s 
t h a t o c c u r r e d 
b e f o r e J u n e 1, 2002, b e c a u s e , i t a r g u e d , B r a n n o n 
had e x c e e d e d t h e " r e a s o n a b l e t i m e " 
f o r n o t i f y i n g B a n k T r u s t 
o f 
any p r o b l e m s w i t h t h o s e t r a n s a c t i o n s . 
I t a l s o c o n t e n d e d 
t h a t 
t h e 
t r i a l c o u r t had 
e r r e d i n a p p l y i n g 
a 6% r a t e o f i n t e r e s t t o 
t h e j u d g m e n t b e c a u s e § 7-4A-506, A l a . Code 1975, 
p r o v i d e s 
t h a t 
t h e 
r a t e 
o f 
i n t e r e s t i s t o 
be 
t h e 
f e d e r a l - f u n d s 
r a t e . 
The 
t r i a l 
c o u r t d e n i e d B a n k T r u s t ' s m o t i o n on S e p t e m b e r 11, 
2006. 
The 
t r i a l 
c o u r t 
s e t t h e n e g l i g e n c e 
and w a n t o n n e s s 
c l a i m s 
f o r 
t r i a l 
on J a n u a r y 
8, 2007. 
D u r i n g 
a p r e t r i a l 
h e a r i n g 
on 
J a n u a r y 
4, 
2007, 
t h e 
t r i a l 
c o u r t 
s t a t e d 
t h a t 
i t had 
j u s t 
become aware o f 
F i t t s v. AmSouth Bank, 
917 
So. 
2d 
818 
( A l a . 
2 0 0 5 ) , 
and 
i t a s k e d 
t h e 
p a r t i e s 
t o 
e x p l a i n 
t h e 
p o s s i b l e 
a p p l i c a b i l i t y 
o f F i t t s t o t h i s c a s e . 
The 
p a r t i e s a r g u e d as 
t o 
w h e t h e r 
F i t t s 
d i c t a t e s 
t h a t 
t h e 
t o r t 
c l a i m s 
were 
p r e c l u d e d 
u n d e r A r t i c l e 
4A 
o f 
t h e 
UCC, 
b u t 
t h e 
t r i a l 
c o u r t 
d e c i d e d 
t o 
p o s t p o n e 
any 
d e c i s i o n 
on 
t h e 
i s s u e 
u n t i l 
a 
m o t i o n 
f o r 
a 
15 
1060637 and 1061059 
j u d g m e n t 
as a 
m a t t e r 
o f l a w was 
f i l e d 
a t t h e 
c l o s e 
o f 
B r a n n o n ' s 
c a s e . 
The n e x t d a y , B a n k T r u s t 
f i l e d 
an amended 
a n s w e r t o B r a n n o n ' s c o m p l a i n t i n w h i c h i t 
a s s e r t e d A r t i c l e 4A 
as a d e f e n s e t o B r a n n o n ' s 
c l a i m s . 
On t h e f i r s t d a y o f t r i a l , J a n u a r y 8, 2007, B r a n n o n 
f i l e d 
a m o t i o n t o s t r i k e B a n k T r u s t ' s amended a n s w e r . 
W i t h o u t 
r u l i n g 
on t h i s m o t i o n , t h e t r i a l c o u r t b e g a n t h e t r i a l , and t h e j u r y 
t h e n h e a r d B r a n n o n ' s c a s e on t h e t o r t c l a i m s . 
On J a n u a r y 10, 
2007, f o l l o w i n g t h e c l o s e o f B r a n n o n ' s c a s e , B a n k T r u s t 
f i l e d 
a m o t i o n f o r a j u d g m e n t as a m a t t e r o f l a w , a s s e r t i n g 
t h a t 
A r t i c l e 4A o f t h e UCC, § 7-4A-101 e t s e q . , A l a . Code 1 
975, 
d i s p l a c e d B r a n n o n ' s common-law 
t o r t c l a i m s a n d , i n a d d i t i o n , 
a r g u i n g 
i n s u f f i c i e n c y 
o f 
t h e 
e v i d e n c e 
w i t h 
r e s p e c t 
t o 
B r a n n o n ' s w a n t o n n e s s 
c l a i m . 
F o l l o w i n g 
f u r t h e r a r g u m e n t s on 
t h e 
d i s p l a c e m e n t 
i s s u e , t h e t r i a l 
c o u r t g r a n t e d 
B a n k T r u s t ' s 
m o t i o n . 
I t 
a l s o 
g r a n t e d 
B r a n n o n ' s 
m o t i o n 
t o 
s t r i k e 
B a n k T r u s t ' s amended a n s w e r as u n t i m e l y 
f i l e d . 
B r a n n o n a p p e a l e d as t o t h e j u d g m e n t as a m a t t e r o f l a w on 
h e r n e g l i g e n c e and w a n t o n n e s s c l a i m s ; B a n k T r u s t c r o s s - a p p e a l e d 
as t o t h e p a r t i a l summary j u d g m e n t 
a g a i n s t i t on B r a n n o n ' s 
b r e a c h - o f - c o n t r a c t 
c l a i m . 
16 
1060637 and 1061059 
I I . 
S t a n d a r d s o f R e v i e w 
T h i s C o u r t e x p l a i n e d t h e s t a n d a r d o f r e v i e w a p p l i c a b l e t o 
a r u l i n g on a j u d g m e n t as a m a t t e r o f l a w i n W a d d e l l 
& Reed, 
I n c . 
v. U n i t e d I n v e s t o r s L i f e I n s u r a n c e Co., 
875 So. 2d 
1143, 
1152 
( A l a . 2 0 0 3 ) : 
"When 
r e v i e w i n g a 
r u l i n g 
on 
a 
m o t i o n 
f o r 
a 
[ j u d g m e n t 
as a m a t t e r o f l a w ] , t h i s C o u r t u s e s 
t h e 
same 
s t a n d a r d 
t h e 
t r i a l 
c o u r t 
u s e d 
i n i t i a l l y 
i n 
d e c i d i n g w h e t h e r t o g r a n t o r deny t h e m o t i o n 
f o r a 
[ j u d g m e n t 
as a m a t t e r o f l a w ] . 
P a l m H a r b o r Homes,  
I n c . 
v. 
C r a w f o r d , 
689 
So. 
2d 
3 
( A l a . 
1 9 9 7 ) . 
R e g a r d i n g 
q u e s t i o n s o f 
f a c t , 
t h e u l t i m a t e q u e s t i o n 
i s 
w h e t h e r 
t h e nonmovant has 
p r e s e n t e d 
s u f f i c i e n t 
e v i d e n c e 
t o a l l o w t h e c a s e 
t o be 
s u b m i t t e d t o 
t h e 
j u r y f o r a f a c t u a l r e s o l u t i o n . 
C a r t e r v. H e n d e r s o n , 
598 
So. 
2d 
1350 
( A l a . 1 
9 9 2 ) . 
The 
nonmovant must 
h a v e 
p r e s e n t e d 
s u b s t a n t i a l 
e v i d e n c e 
i n 
o r d e r 
t o 
w i t h s t a n d a m o t i o n 
f o r a 
[ j u d g m e n t 
as a m a t t e r 
o f 
l a w ] . 
See 
§ 
1 2 - 2 1 - 1 2 , 
A l a . Code 
1975; 
West 
v. 
 
F o u n d e r s 
L i f e A s s u r a n c e 
Co. 
o f F l o r i d a , 
547 
So. 
2d 
870, 
871 
( A l a . 
1 9 8 9 ) . 
A 
r e v i e w i n g 
c o u r t 
must 
d e t e r m i n e w h e t h e r t h e p a r t y who 
b e a r s t h e b u r d e n 
o f 
p r o o f has p r o d u c e d 
s u b s t a n t i a l e v i d e n c e 
c r e a t i n g 
a 
f a c t u a l 
d i s p u t e r e q u i r i n g 
r e s o l u t i o n 
by 
t h e 
j u r y . 
C a r t e r , 598 So. 2d a t 1353. 
I n r e v i e w i n g a r u l i n g 
on 
a m o t i o n 
f o r a 
[ j u d g m e n t 
as a m a t t e r o f l a w ] , 
t h i s 
C o u r t v i e w s t h e e v i d e n c e i n t h e l i g h t most f a v o r a b l e 
t o 
t h e 
nonmovant 
and 
e n t e r t a i n s 
s u c h 
r e a s o n a b l e 
i n f e r e n c e s as t h e j u r y w o u l d h a v e b e e n f r e e t o draw. 
I d . 
R e g a r d i n g 
a 
q u e s t i o n o f 
l a w , 
h o w e v e r , 
t h i s 
C o u r t 
i n d u l g e s no p r e s u m p t i o n 
o f c o r r e c t n e s s as 
t o 
t h e 
t r i a l 
c o u r t ' s 
r u l i n g . " 
The 
s t a n d a r d o f r e v i e w f o r a 
r u l i n g 
on 
a m o t i o n 
f o r a 
summary j u d g m e n t i s a l s o w e l l 
s e t t l e d : 
17 
1060637 and 
1061059 
"'A 
summary j u d g m e n t 
i s p r o p e r when 
t h e r e i s no g e n u i n e i s s u e o f m a t e r i a l 
f a c t 
and 
t h e 
m o v i n g 
p a r t y 
i s 
e n t i t l e d 
t o 
a 
j u d g m e n t 
as 
a 
m a t t e r 
o f 
l a w . 
R u l e 
5 6 ( c ) ( 3 ) , A l a . R. C i v . P. 
The b u r d e n i s on 
t h e 
m o v i n g 
p a r t y 
t o make 
a 
p r i m a 
f a c i e 
s h o w i n g t h a t t h e r e 
i s no g e n u i n e i s s u e 
o f 
m a t e r i a l 
f a c t and 
t h a t i t i s e n t i t l e d t o a 
j u d g m e n t 
as 
a 
m a t t e r 
o f 
l a w . 
I n 
d e t e r m i n i n g w h e t h e r t h e movant has 
c a r r i e d 
t h a t 
b u r d e n , 
t h e 
c o u r t 
i s 
t o 
v i e w 
t h e 
e v i d e n c e i n a 
l i g h t most f a v o r a b l e 
t o 
t h e 
n o n m o v i n g p a r t y and 
t o draw a l l r e a s o n a b l e 
i n f e r e n c e s 
i n 
f a v o r 
o f 
t h a t 
p a r t y . 
To 
d e f e a t 
a 
p r o p e r l y 
s u p p o r t e d 
summary 
j u d g m e n t m o t i o n , 
t h e n o n m o v i n g p a r t y must 
p r e s e n t 
" s u b s t a n t i a l e v i d e n c e " 
c r e a t i n g a 
g e n u i n e 
i s s u e o f m a t e r i a l 
f a c t — " e v i d e n c e 
o f s u c h w e i g h t and q u a l i t y t h a t 
f a i r - m i n d e d 
p e r s o n s 
i n 
t h e 
e x e r c i s e 
o f 
i m p a r t i a l 
j u d g m e n t can r e a s o n a b l y 
i n f e r t h e 
e x i s t e n c e 
o f 
t h e 
f a c t 
s o u g h t 
t o 
be 
p r o v e d . " 
A l a . 
Code 
1975, 
§ 1 2 - 2 1 - 1 2 ; West 
v. 
F o u n d e r s 
 
L i f e A s s u r a n c e Co. 
o f 
F l o r i d a , 
547 
So. 
2d 
870, 
871 
( A l a . 1 9 8 9 ) . ' 
" Q u e s t i o n s o f l a w 
a r e r e v i e w e d 
de 
n o v o . " 
P r i t c h e t t 
v. 
ICN 
Med. 
A l l i a n c e , 
I n c . , 
938 
So. 
2d 
933, 
935 
( A l a . 
2006) 
( q u o t i n g 
C a p i t a l 
A l l i a n c e 
I n s . 
Co. 
v. 
T h o r o u g h - C l e a n , I n c . , 
639 
So. 
2d 
1349, 
1350 
( A l a . 
1 9 9 4 ) ) . 
I I I . 
A n a l y s i s 
A. 
B a n k T r u s t ' s C r o s s - A p p e a l o f t h e 
P a r t i a l Summary Judgment 
( c a s e no. 
1061059) 
B a n k T r u s t c r o s s - a p p e a l s 
f r o m t h e p a r t i a l summary j u d g m e n t 
t h e 
t r i a l c o u r t e n t e r e d on B r a n n o n ' s b r e a c h - o f - c o n t r a c t 
c l a i m . 
18 
1060637 and 1061059 
B a n k T r u s t c o n t e n d s , among o t h e r t h i n g s , 
t h a t a g e n u i n e 
i s s u e 
o f 
f a c t 
e x i s t s 
as 
t o 
w h e t h e r 
B r a n n o n 
f u l f i l l e d 
h e r 
r e s p o n s i b i l i t y t o t i m e l y n o t i f y B a n k T r u s t i n t h e e v e n t o f an 
u n a u t h o r i z e d payment f r o m t h e e s t a t e a c c o u n t . 
I t a l s o 
a r g u e s 
t h a t t h e r e c o r d c o n t a i n s s u b s t a n t i a l e v i d e n c e i n d i c a t i n g 
t h a t 
McCoy's r e q u e s t t o B a n k T r u s t f o r payment o f l e g a l f e e s f r o m 
t h e 
e s t a t e a c c o u n t 
f e l l w i t h i n t h e a u t h o r i t y g r a n t e d t o h i m by 
B r a n n o n . 
A t 
a minimum, 
a c c o r d i n g t o B a n k T r u s t , 
t h e 
t r i a l 
c o u r t ' s 
c o n s i d e r a t i o n 
o f B r a n n o n ' s 
p a r t i a l - s u m m a r y - j u d g m e n t 
m o t i o n s h o u l d h a v e b e e n p o s t p o n e d p u r s u a n t t o R u l e 5 6 ( f ) , A l a . 
R. C i v . P., i n o r d e r t o a l l o w B a n k T r u s t t o engage i n d i s c o v e r y 
r e g a r d i n g t h e a l l e g e d 
a u t h o r i z a t i o n .
8 
8 T h e p a r t i e s d i s a g r e e i n t h e i r b r i e f s on a p p e a l as t o t h e 
a p p l i c a b i l i t y o f A r t i c l e 4A o f t h e UCC t o B r a n n o n ' s b r e a c h - o f -
c o n t r a c t 
c l a i m . 
We 
have 
c a r e f u l l y 
r e v i e w e d 
t h e 
r e c o r d , 
i n c l u d i n g 
t h e summary-judgment m o t i o n 
f i l e d 
by B r a n n o n , 
t h e 
w r i t t e n r e s p o n s e t o t h a t m o t i o n 
f i l e d 
by B a n k T r u s t , and 
t h e 
t r i a l c o u r t ' s summary-judgment o r d e r i t s e l f . 
I t i s c l e a r f r o m 
o u r r e v i e w o f t h e s e m a t t e r s t h a t t h e t r i a l c o u r t ' s g r a n t i n g o f 
B r a n n o n ' s 
m o t i o n f o r a p a r t i a l summary j u d g m e n t was b a s e d 
on 
i t s c o n s i d e r a t i o n o f common-law p r i n c i p l e s r e l a t i n g t o b r e a c h -
o f - c o n t r a c t c l a i m s and d e f e n s e s t o s u c h c l a i m s and n o t on 
any 
r i g h t 
o f r e c o v e r y t h a t m i g h t 
e x i s t 
i n B r a n n o n ' s 
f a v o r 
u n d e r 
A r t i c l e 
4A. 
We 
t h e r e f o r e 
h a v e 
n o t 
a d d r e s s e d 
B a n k T r u s t ' s 
a r g u m e n t s 
on a p p e a l p e r t a i n i n g t o A r t i c l e 
4A as a b a s i s f o r 
r e v e r s i n g t h e summary j u d g m e n t . 
T h i s C o u r t 
w i l l 
n o t r e v e r s e 
a j u d g m e n t on a g r o u n d n o t a r g u e d t o t h e t r i a l c o u r t . 
A n d r e w s 
 
v. M e r r i t t O i l Co., 
612 So. 2d 409, 410 
( A l a . 1 9 9 2 ) . 
N o t h i n g 
i n 
t h i s 
o p i n i o n , h o w e v e r , p r e v e n t s t h e 
p a r t i e s , 
on 
remand, 
f r o m p r e s e n t i n g t o t h e 
t r i a l 
c o u r t t h e i s s u e w h e t h e r 
A r t i c l e 
19 
1060637 and 1061059 
We 
a g r e e 
w i t h 
B a n k T r u s t 
t h a t 
t h e 
r e c o r d 
c o n t a i n s 
s u b s t a n t i a l e v i d e n c e f r o m w h i c h a r e a s o n a b l e 
f a c t - f i n d e r 
c o u l d 
c o n c l u d e t h a t B r a n n o n d i d n o t t i m e l y o b j e c t t o t h e p a y m e n t s 
f r o m 
t h e e s t a t e 
a c c o u n t 
t h a t 
she 
c l a i m s 
were 
i m p r o p e r l y 
r e q u e s t e d 
b y McCoy. 
As n o t e d , t h e p a y m e n t s 
t r a n s f e r r e d b y 
B a n k T r u s t f r o m t h e e s t a t e a c c o u n t were r e p e a t e d 
e v e r y month 
o v e r t h e c o u r s e 
o f a s e v e n - m o n t h p e r i o d . 
A t no t i m e 
d u r i n g 
t h i s 
p e r i o d d i d B r a n n o n 
e v e r 
q u e s t i o n 
t h o s e 
p a y m e n t s . 
The 
document 
e n t i t l e d 
" D e p o s i t 
A c c o u n t 
Terms and 
C o n d i t i o n s , " 
w h i c h was a t t a c h e d t o t h e s i g n a t u r e 
c a r d 
s i g n e d b y B r a n n o n , 
c o n t a i n e d t h e f o l l o w i n g p r o v i s i o n : 
"STATEMENTS -- YOU MUST EXAMINE YOUR STATEMENT 
OF ACCOUNT WITH 'REASONABLE 
PROMPTNESS'. 
I F YOU 
DISCOVER (OR REASONABLY SHOULD HAVE DISCOVERED) ANY 
UNAUTHORIZED 
PAYMENTS 
OR 
ALTERATIONS, 
YOU 
MUST 
PROMPTLY NOTIFY US OF THE RELEVANT FACTS. 
I F YOU 
F A I L TO DO EITHER OF THESE DUTIES, YOU WILL HAVE TO 
EITHER SHARE THE LOSS WITH US, OR BEAR THE 
LOSS 
ENTIRELY YOURSELF (DEPENDING ON WHETHER WE EXERCISED 
ORDINARY CARE AND, I F NOT, WHETHER WE SUBSTANTIALLY 
CONTRIBUTED TO THE L O S S ) . 
THE LOSS COULD BE NOT 
ONLY WITH RESPECT TO ITEMS ON THE STATEMENT, 
BUT 
OTHER ITEMS FORGED OR ALTERED BY THE SAME WRONGDOER. 
YOU AGREE THAT THE TIME YOU HAVE TO EXAMINE YOUR 
STATEMENT 
AND 
REPORT 
TO 
US 
WILL 
DEPEND 
ON 
THE 
CIRCUMSTANCES, BUT THAT SUCH TIME WILL NOT, IN ANY 
CIRCUMSTANCE, EXCEED A TOTAL OF 30 DAYS FROM WHEN 
THE STATEMENT I S FIRST MADE A V A I L A B L E TO YOU. 
4A d i s p l a c e s B r a n n o n ' s common-law b r e a c h - o f - c o n t r a c t 
c l a i m . 
20 
1060637 and 1061059 
"YOU FURTHER AGREE THAT I F YOU F A I L TO REPORT 
ANY UNAUTHORIZED SIGNATURES, ALTERATIONS, FORGERIES 
OR ANY OTHER ERRORS IN YOUR ACCOUNT WITHIN 60 DAYS 
OF WHEN WE MAKE THE STATEMENT A V A I L A B L E , YOU CANNOT 
ASSERT 
A CLAIM AGAINST 
US ON ANY 
ITEMS 
IN THAT 
STATEMENT, 
AND 
THE 
LOSS WILL BE ENTIRELY YOURS. 
THIS 60-DAY L I M I T A T I O N I S WITHOUT REGARD TO WHETHER 
WE EXERCISED ORDINARY CARE. 
THE L I M I T A T I O N IN THIS 
PARAGRAPH 
I S IN ADDITION TO THAT CONTAINED 
IN THE 
FIRST PARAGRAPH OF THIS SECTION." 
( C a p i t a l i z a t i o n i n o r i g i n a l . ) 
I n a d d i t i o n , as n o t e d , t h e r e c o r d i n d i c a t e s t h a t 
B r a n n o n 
i n s t r u c t e d a B a n k T r u s t e m p l o y e e , L y n P e t e r s o n , t o s e n d c h e c k s 
f o r 
t h e e s t a t e 
a c c o u n t 
t o McCoy and 
t h a t 
she 
l i s t e d t h e 
m a i l i n g a d d r e s s f o r t h e e s t a t e a c c o u n t as " E s t a t e o f L e m u e l 
M o r r i s o n , 
c/o D o u g l a s L. McCoy" f o l l o w e d by Hand 
A r e n d a l l ' s 
m a i l i n g 
a d d r e s s . 
I t i s u n d i s p u t e d , as n o t e d , 
t h a t 
McCoy 
i n i t i a l l y r e c e i v e d a l l 
b a n k s t a t e m e n t s f o r 
t h e e s t a t e a c c o u n t , 
p r e s u m a b l y p u r s u a n t t o B r a n n o n ' s 
i n s t r u c t i o n t o P e t e r s o n , and 
t h a t 
he 
i n 
t u r n 
h a d 
a 
r e s p o n s i b i l i t y 
t o 
f o r w a r d 
t h e s e 
s t a t e m e n t s 
t o B r a n n o n . 
I n 
a d d i t i o n , 
as 
n o t e d , 
P e t e r s o n 
t e s t i f i e d 
b y 
d e p o s i t i o n 
t h a t 
B r a n n o n 
t o l d 
h e r t h a t 
"Doug 
[McCoy] w o u l d h a n d l e 
t h i s a c c o u n t f o r 
h e r . " The r e c o r d 
a l s o 
c o n t a i n s an a f f i d a v i t f r o m P e t e r s o n , i n w h i c h she a v e r s : 
" I 
was t o l d by Ms. B r a n n o n 
t h a t Doug McCoy w o u l d be i n c h a r g e o f 
t h i s 
a c c o u n t . " 
21 
1060637 and 1061059 
F u r t h e r m o r e , 
B a n k T r u s t 
a r g u e s 
on 
a p p e a l 
t h a t 
i t 
a t t e m p t e d , 
by 
means 
o f 
a 
n o n p a r t y 
s u b p o e n a , 
t o 
o b t a i n 
d o c u m e n t s f r o m McCoy and Hand A r e n d a l l 
t h a t w o u l d 
document 
B r a n n o n ' s a u t h o r i z a t i o n a n d / o r r a t i f i c a t i o n o f McCoy's payment 
r e q u e s t s 
t o B a n k T r u s t . 
A t B r a n n o n ' s 
u r g i n g , 
h o w e v e r , 
t h a t 
s u b p o e n a was 
q u a s h e d by t h e 
t r i a l 
c o u r t b a s e d on t h e 
c o u r t ' s 
c o n c l u s i o n 
t h a t 
c o m p l i a n c e 
w i t h 
t h e s u b p o e n a w o u l d 
v i o l a t e 
B r a n n o n ' s 
a t t o r n e y - c l i e n t p r i v i l e g e . 
B a n k T r u s t a r g u e s 
t h a t 
t h a t r u l i n g was i n e r r o r and t h a t i t was 
t h e r e a f t e r p r e v e n t e d 
f r o m o b t a i n i n g 
f u r t h e r e v i d e n c e f r o m McCoy o r Hand 
A r e n d a l l 
r e l a t i n g 
t o s u c h a u t h o r i z a t i o n o r 
r a t i f i c a t i o n 
by v i r t u e o f 
t h e 
t r i a l c o u r t ' s h o l d i n g r e g a r d i n g B r a n n o n ' s a t t o r n e y - c l i e n t 
p r i v i l e g e . 
B a n k T r u s t 
a r g u e s 
t h a t 
t h e e n t r y 
o f t h e summary 
j u d g m e n t a g a i n s t i t w i t h o u t i t s f i r s t b e i n g a l l o w e d t o c o n d u c t 
a d d i t i o n a l d i s c o v e r y 
i n t h i s 
r e g a r d was 
i n e r r o r . 
We 
a g r e e 
w i t h 
B a n k T r u s t 
t h a t , 
t o t h e 
e x t e n t 
B a n k T r u s t 
s o u g h t t o d i s c o v e r 
i n f o r m a t i o n and d o c u m e n t s r e l a t i n g t o t h e 
i s s u e w h e t h e r B r a n n o n 
a u t h o r i z e d o r r a t i f i e d McCoy's payment 
r e q u e s t s t o B a n k T r u s t , s u c h i n f o r m a t i o n and d o c u m e n t s d i d n o t 
c o n s t i t u t e 
p r i v i l e g e d a t t o r n e y - c l i e n t c o m m u n i c a t i o n s . 
The 
a t t o r n e y - c l i e n t 
p r i v i l e g e 
s h i e l d s 
c o m m u n i c a t i o n s 
b e t w e e n 
a 
22 
1060637 a n d 1061059 
l a w y e r 
a n d a 
c l i e n t 
t h a t " a r e b a s e d on, o r may d i s c l o s e , 
c o n f i d e n t i a l i n f o r m a t i o n p r o v i d e d b y t h e c l i e n t o r c o n t a i n t h e 
a d v i c e o r o p i n i o n s o f t h e a t t o r n e y . " 
81 Am. J u r 
2d W i t n e s s e s 
§ 357 (2004 ). 
When an a t t o r n e y i s t h e c l i e n t ' s 
a g e n t i n 
r e g a r d t o a t r a n s a c t i o n w i t h a t h i r d p a r t y , t h e f a c t o f 
t h e 
a t t o r n e y ' s 
e m p l o y m e n t , 
t h e 
a u t h o r i t y 
o f 
t h e 
a t t o r n e y , 
i n s t r u c t i o n s 
g i v e n 
t o t h e a t t o r n e y , 
a n d t h e 
a t t o r n e y ' s 
c o m m u n i c a t i o n s t o t h e c l i e n t i n 
t h e c o u r s e o f e x e c u t i n g h i s 
o r 
h e r 
d u t i e s 
c o n s t i t u t e 
p a r t 
o f t h e r e s g e s t a e 
o f t h e 
t r a n s a c t i o n 
a n d w o u l d n o t be 
p r i v i l e g e d 
i n f o r m a t i o n 
i n a 
l a w s u i t r e g a r d i n g t h e t r a n s a c t i o n . N y h o f f v . P a l m e r , 217 A l a . 
432, 116 So. 520, 524 ( 1 9 2 8 ) .
9 
See a l s o R u l e 5 0 2 ( b ) , A l a . 
R. 
E v i d . 
( e x p l a i n i n g t h a t t h e a t t o r n e y - c l i e n t p r i v i l e g e 
p r o t e c t s 
a g a i n s t d i s c l o s u r e o f " c o n f i d e n t i a l c o m m u n i c a t i o n [ s ] made 
f o r 
t h e 
p u r p o s e o f f a c i l i t a t i n g 
t h e r e n d i t i o n o f p r o f e s s i o n a l 
l e g a l 
s e r v i c e s t o t h e c l i e n t " ) . 
On t h e b a s i s o f t h e f o r e g o i n g , we c o n c l u d e t h a t t h e t r i a l 
c o u r t ' s 
e n t r y 
o f a 
p a r t i a l 
summary 
j u d g m e n t on B r a n n o n ' s 
9 B e c a u s e we d e c i d e 
t h a t , on t h e b a s i s o f t h e p r i n c i p l e s 
r e c o g n i z e d i n N y h o f f v . P a l m e r , B a n k T r u s t i s e n t i t l e d t o a t 
l e a s t some o f t h e d i s c o v e r y i t 
s o u g h t b e f o r e t h e e n t r y o f 
t h e 
p a r t i a l 
summary 
j u d g m e n t 
a g a i n s t 
i t , we 
p r e t e r m i t 
c o n s i d e r a t i o n o f B a n k T r u s t ' s o t h e r a r g u m e n t s made i n 
an e f f o r t 
t o a c h i e v e 
t h i s 
r e s u l t . 
23 
1060637 and 
1061059 
b r e a c h - o f - c o n t r a c t 
c l a i m 
was 
i n 
e r r o r . 
We 
r e v e r s e 
t h a t 
j u d g m e n t and remand t h i s c a u s e t o t h e 
t r i a l c o u r t f o r f u r t h e r 
p r o c e e d i n g s 
as t o t h i s 
i s s u e . 
B. 
B r a n n o n ' s A p p e a l o f t h e Judgment as a M a t t e r 
o f Law 
as 
 
t o Her 
T o r t C l a i m s 
( c a s e no. 
1060637) 
B r a n n o n a r g u e s 
t h a t 
t h e 
t r i a l 
c o u r t 
i m p r o p e r l y 
g r a n t e d 
B a n k T r u s t ' s m o t i o n f o r a j u d g m e n t as a m a t t e r 
o f l a w b e c a u s e , 
she 
a r g u e s , 
B a n k T r u s t 
f a i l e d t o p r o p e r l y p l e a d A r t i c l e 4A 
as 
an 
a f f i r m a t i v e d e f e n s e 
i n i t s o r i g i n a l 
a n s w e r 
t o 
B r a n n o n ' s 
c o m p l a i n t . 
B r a n n o n 
n o t e s 
t h a t 
B a n k T r u s t 
n e v e r 
r a i s e d 
t h e 
a p p l i c a b i l i t y 
o f 
A r t i c l e 
4A 
u n t i l 
t h e 
t r i a l 
c o u r t 
i n q u i r e d 
a b o u t i t s a p p l i c a b i l i t y f o u r d a y s b e f o r e 
t h e 
t r i a l 
d a t e . 
I t 
a l s o o b s e r v e s t h a t t h e 
t r i a l c o u r t s t r u c k B a n k T r u s t ' s amended 
a n s w e r a s s e r t i n g A r t i c l e 4A as an a f f i r m a t i v e d e f e n s e b e c a u s e 
i t was 
n o t 
f i l e d u n t i l j u s t b e f o r e t h e 
t r i a l d a t e . 
C i t i n g 
t h e 
r e q u i r e m e n t 
i n R u l e 
8 ( c ) , A l a . R. 
C i v . P., 
t h a t a p a r t y 
s e t 
f o r t h 
i t s 
a f f i r m a t i v e d e f e n s e s 
i n 
i t s p l e a d i n g , 
B r a n n o n 
c o n t e n d s 
t h a t 
t h e 
t r i a l 
c o u r t 
s h o u l d 
n e v e r have 
c o n s i d e r e d 
w h e t h e r A r t i c l e 4A d i s p l a c e d t h e 
t o r t c l a i m s a t i s s u e . 
R u l e 
8 ( c ) 
d o e s 
n o t 
l i s t 
t h e 
s t a t u t o r y d i s p l a c e m e n t 
o f 
common-law 
c l a i m s 
as 
an 
" a f f i r m a t i v e d e f e n s e . " 
T h i s 
i s 
24 
1060637 and 1061059 
b e c a u s e 
s u c h 
d i s p l a c e m e n t 
i s 
i n 
f a c t 
n o t 
an 
a f f i r m a t i v e 
d e f e n s e . 
"An 
' a f f i r m a t i v e 
d e f e n s e ' 
i s 
d e f i n e d 
as 
a 
' m a t t e r 
a s s e r t e d 
by 
[ t h e ] d e f e n d a n t w h i c h , a s s u m i n g 
t h e c o m p l a i n t t o 
be t r u e , c o n s t i t u t e s a d e f e n s e t o 
i t . ' " 
C i t y o f B i r m i n g h a m v.  
B u s i n e s s 
R e a l t y 
I n v . 
Co., 
722 
So. 
2d 
747 , 750 
( A l a . 1998 ) 
( q u o t i n g 
B l a c k ' s 
Law 
D i c t i o n a r y 
( 6 t h e d . 
1 9 9 0 ) ) . 
F o r 
a 
p o s i t i o n t o c o n s t i t u t e an a f f i r m a t i v e d e f e n s e assumes t h a t t h e  
c l a i m 
a g a i n s t 
w h i c h i t i s a s s e r t e d 
i s , i n t h e a b s e n c e o f t h e  
a s s e r t i o n 
o f t h a t 
d e f e n s e , 
a c o g n i z a b l e c l a i m u n d e r A l a b a m a  
l a w . 
I n 
I n t e r n a t i o n a l L o n g s h o r e m e n ' s A s s ' n v. D a v i s , 470 
So. 
2d 
1215, 
1216 
( A l a . 1 9 8 5 ) , 
t h i s 
C o u r t 
h e l d 
t h a t 
" u n d e r 
t h e 
c i r c u m s t a n c e s o f t h [ a t ] c a s e , " t h e i s s u e o f f e d e r a l 
p r e e m p t i o n 
t h a t 
was 
p r e s e n t e d was 
an 
a f f i r m a t i v e d e f e n s e .
1 0 
A l s o , 
c f . 
1
0 I t s h o u l d be n o t e d t h a t t h e i s s u e 
w i t h w h i c h t h e 
D a v i s 
C o u r t was 
c o n c e r n e d was w h e t h e r " t h e N a t i o n a l L a b o r 
R e l a t i o n s 
A c t 
p r e e m p t s 
a 
s t a t e ' s 
s u b j e c t 
m a t t e r 
j u r i s d i c t i o n , " 
o r 
" w h e t h e r 
f e d e r a l 
p r e e m p t i o n 
i s [ , i n s t e a d , ] 
a 
w a i v a b l e 
d e f e n s e . " 
470 
So. 2d a t 1216. 
The 
i s s u e w h e t h e r 
p r e e m p t i o n 
c o n s t i t u t e s an a f f i r m a t i v e d e f e n s e as o p p o s e d t o an a b r o g a t i o n 
o f 
s t a t e 
l a w 
was 
n o t 
n e c e s s a r y 
t o 
t h e 
C o u r t ' s 
d e c i s i o n . 
E i t h e r t h e n o n c o g n i z a b i l i t y 
o f a s t a t e 
c l a i m as a r e s u l t o f 
f e d e r a l p r e e m p t i o n 
o r t h e t r e a t m e n t o f f e d e r a l p r e e m p t i o n 
as 
m e r e l y an a f f i r m a t i v e d e f e n s e t o an o t h e r w i s e v a l i d 
s t a t e - l a w 
c l a i m w o u l d h a v e l e d t o t h e same r e s u l t , 
i . e . , a d e f e n s e 
t o 
t h e 
p l a i n t i f f ' s 
c l a i m 
t h a t 
was 
n o t 
j u r i s d i c t i o n a l 
and 
t h a t 
25 
1060637 and 
1061059 
C h a r l e s 
A l a n W r i g h t e t a l . , 19A 
F e d e r a l 
P r a c t i c e & P r o c e d u r e :  
J u r i s d i c t i o n , 
R e p o r t e r ' s N o t e s D.: 
R e m o v a l on 
t h e 
B a s i s 
o f 
C o m p l e t e P r e e m p t i o n , 699, 
701 
(2009) ( d i s c u s s i n g t h e h u r d l e 
t o 
r e m o v a l p o s e d by t h e " m a s t e r - o f - t h e - c o m p l a i n t d o c t r i n e " w h e r e , 
on i t s f a c e , a c o m p l a i n t p u r p o r t s 
t o a s s e r t o n l y a c l a i m u n d e r 
s t a t e l a w 
and 
n o t i n g t h a t , " [ i ] n t h e o r d i n a r y c a s e i n w h i c h a 
d e f e n d a n t 
a s s e r t s 
t h a t 
a s t a t e - l a w 
c l a i m 
c o n f l i c t s 
w i t h 
and 
t h e r e f o r e 
i s p r e e m p t e d by 
f e d e r a l l a w , 
t h i s 
i s t r e a t e d m e r e l y 
as 
t h e 
a s s e r t i o n o f 
an 
a f f i r m a t i v e d e f e n s e t o 
t h e 
l i a b i l i t y 
o t h e r w i s e c r e a t e d 
by 
s t a t e 
l a w " ) . 
c o u l d 
be w a i v e d 
i f , as 
i n D a v i s , 
i t was 
n o t 
p r o p e r l y 
r a i s e d 
b e f o r e 
t h e 
t r i a l 
c o u r t . 
A l s o , 
t h e 
D a v i s C o u r t 
i t s e l f 
e x p l a i n e d 
t h a t 
i t was 
n o t 
d e c i d i n g 
t h a t 
t h e 
s t a t e - l a w 
c l a i m b e f o r e 
i t had 
i n f a c t b e e n 
p r e e m p t e d by 
f e d e r a l l a w b u t was 
a d d r e s s i n g 
o n l y t h e 
q u e s t i o n 
w h e t h e r t h e a s s e r t i o n t h a t t h e s t a t e - l a w 
c l a i m i s " s u b j e c t 
t o 
p r e e m p t i o n " must be 
p r o p e r l y p r e s e r v e d i n t h e 
t r i a l 
c o u r t 
i n 
o r d e r 
f o r i t t o be 
r e v i e w e d 
on 
a p p e a l . 
470 
So. 
2d 
a t 
1216 
n.2. 
I n f a c t , 
t h e C o u r t e x p l a i n e d 
t h a t , " i f [ i t ] were t o r u l e 
on 
t h e 
m e r i t s , 
[ i t ] c o u l d 
n o t 
f i n d 
t h a t 
t h e 
s t a t e 
c o u r t ' s 
j u r i s d i c t i o n 
i s f e d e r a l l y p r e e m p t e d . " 
I d . 
The 
C o u r t 
n o t e d 
t h a t 
t h e 
s t a t e - l a w 
c l a i m 
p r e s e n t e d 
t o 
i t was 
"an 
o r d i n a r y 
m i s r e p r e s e n t a t i o n 
s u i t " 
a g a i n s t 
a 
s u p e r v i s o r , 
t h a t 
" [ t ] h e 
N a t i o n a l 
L a b o r 
R e l a t i o n s 
B o a r d 
[ ( ' N L R B ' ) ] 
h a [ d ] 
a l r e a d y 
d e t e r m i n e d t h a t an e m p l o y e r ' s s u p e r v i s o r s 
a r e n o t p r o t e c t e d 
by 
t h e 
L a b o r Management 
R e l a t i o n s 
A c t , " 
and 
" [ t ] h u s , 
i n 
t h i s 
c a s e , 
P l a i n t i f f 
has 
no 
remedy 
b e f o r e 
t h e 
NLRB, 
and 
t h i s 
d i s p u t e , a l t h o u g h somewhat l a b o r - r e l a t e d , i s , a t m o s t , o n l y 
o f 
' p e r i p h e r a l c o n c e r n ' t o t h e NLRB." 
I d . 
D a v i s , 
t h e r e f o r e , 
i s 
n o t 
a c a s e i n w h i c h t h e 
a s s e r t e d 
s t a t e - l a w 
c l a i m a r g u a b l y 
had 
b e e n d i s p l a c e d by 
f e d e r a l 
l a w . 
26 
1060637 and 1061059 
When f e d e r a l l a w c o m p l e t e l y d i s p l a c e s s t a t e l a w , h o w e v e r , 
t h e r e 
i s a u t h o r i t y 
s u g g e s t i n g 
a d i f f e r e n t r e s u l t . 
C f . i d . 
( c i t i n g , 
i n t e r 
a l i a , 
B e n e f i c i a l N a t ' l Bank v. A n d e r s o n , 
539 
U.S. 
1 ( 2 0 0 3 ) , and n o t i n g t h a t t h e U n i t e d 
S t a t e s Supreme C o u r t 
has 
r e c o g n i z e d 
t h a t 
a 
f e d e r a l 
s t a t u t e 
may 
d i s p l a c e 
o r 
" c o m p l e t e l y 
p r e e m p t " 
s t a t e 
l a w 
and 
n o t 
m e r e l y 
i m m u n i z e 
a 
d e f e n d a n t f r o m s t a t e - c r e a t e d 
l i a b i l i t y ) ; 
B i l l y 
J a c k f o r H e r ,  
I n c . v. New Y o r k C o a t , S u i t , D r e s s , R a i n w e a r & A l l i e d 
W o r k e r s '  
U n i o n , 511 F. Supp. 1180 
(S.D. N.Y. 
1981) 
( c o n c l u d i n g 
t h a t a 
f i n d i n g o f p r e e m p t i o n 
r e p r e s e n t s 
a c o n c l u s i o n 
t h a t 
C o n g r e s s 
has 
d e t e r m i n e d 
t o 
s u p p l a n t 
s t a t e 
l a w 
a l t o g e t h e r 
and 
t h a t , 
t h e r e f o r e , 
f e d e r a l p r e e m p t i o n 
i s n o t , by 
i t s n a t u r e , 
t o 
be 
v i e w e d 
m e r e l y 
as 
an 
a f f i r m a t i v e 
d e f e n s e 
f o r p u r p o s e s 
o f 
d e c i d i n g 
t h e 
r e m o v e a b i l i t y 
o f 
an 
a c t i o n 
b r o u g h t 
i n 
s t a t e 
c o u r t ) . 
See 
a l s o 
C h a r l e s 
A l a n W r i g h t 
e t a l . , 14B 
F e d e r a l 
 
P r a c t i c e and P r o c e d u r e : J u r i s d i c t i o n § 3722.1 
(3d e d . 2006) 
( e x p l a i n i n g t h e d i f f e r e n c e b e t w e e n " o r d i n a r y 
p r e e m p t i o n " 
and 
" c o m p l e t e p r e e m p t i o n " as b e i n g a s i t u a t i o n i n w h i c h 
C o n g r e s s 
" d i d n o t j u s t p r o v i d e 
a f e d e r a l d e f e n s e t o t h e a p p l i c a t i o n o f 
s t a t e l a w ; r a t h e r , i t r e p l a c e d t h e s t a t e l a w w i t h f e d e r a l l a w " 
( e m p h a s i s a d d e d ) , c i t i n g A v c o C o r p . v. A e r o Lodge No. 735, 
390 
27 
1060637 and 
1061059 
U.S. 
557 
( 1 9 6 8 ) ( h o l d i n g 
t h a t 
f e d e r a l 
l a w 
had 
" a b s o r b e d " 
t h e 
o t h e r w i s e a p p l i c a b l e 
s t a t e 
l a w ) ) . 
When t h e 
s t a t e l a w 
i t s e l f c h a n g e s , h o w e v e r , t h e r e 
can 
be 
no a r g u m e n t t h a t t h e l a w as c h a n g e d i s somehow an 
" a f f i r m a t i v e 
d e f e n s e " t o t h e 
l a w 
as 
i t e x i s t e d b e f o r e t h e c h a n g e . 
The 
l a w 
as c h a n g e d i s s i m p l y 
t h e new 
l a w . 
Thus, i f a common-law 
c l a i m 
i s 
d i s p l a c e d 
by 
a 
s e t 
o f 
s t a t u t o r y 
r i g h t s 
p r o v i d e d 
by 
t h e 
l e g i s l a t u r e , 
t h e n , 
by 
d e f i n i t i o n , 
t h e 
common-law 
c l a i m 
no 
l o n g e r 
e x i s t s 
i n 
s t a t e 
l a w , 
h a v i n g 
g i v e n 
way 
t o 
t h e 
new 
s t a t u t o r y 
c a u s e s 
o f 
a c t i o n . 
By 
d e f i n i t i o n , 
p l e a d i n g 
a 
n o n e x i s t e n t 
c l a i m c o n s t i t u t e s a f a i l u r e t o s t a t e a c l a i m upon 
w h i c h r e l i e f can be g r a n t e d . 
Our 
h o l d i n g 
i n t h i s r e g a r d 
f i n d s 
s u p p o r t i n t h e d e c i s i o n s 
o f t h i s C o u r t and o t h e r c o u r t s . 
See, 
e.g., 
C o n t i n e n t a l 
C a s . 
Co. 
v. 
Compass 
Bank 
( C i v . A . 
04-07 
66-KD-C, M a r c h 6, 2006) (S.D. 
A l a . 2006) ( n o t r e p o r t e d 
i n 
F. 
Supp. 
2d) 
( c o n c l u d i n g 
t h a t 
a l l e g a t i o n s 
o f 
a common-law 
c o n v e r s i o n 
by 
t h e 
i s s u e r o f a c h e c k a g a i n s t 
a d e p o s i t o r y 
b a n k 
f a i l e d 
t o s t a t e a c l a i m b e c a u s e o f d i s p l a c e m e n t by 
t h e 
UCC); 
AmSouth Bank v. 
T i c e , 
923 
So. 
2d 
1 
0 
60 
( A l a . 2005) 
( h o l d i n g 
t h a t 
t h e 
a m o t i o n 
f o r 
a j u d g m e n t 
as 
a m a t t e r 
o f 
l a w 
s h o u l d 
h a v e b e e n g r a n t e d on 
t h e g r o u n d t h a t 
t h e 
p l a i n t i f f ' s common-
28 
1060637 a n d 1061059 
l a w c l a i m s 
f o r n e g l i g e n c e a n d w a n t o n n e s s were d i s p l a c e d by 
t h e 
UCC); 
A m e r i c a n L i b e r t y I n s . Co. v. AmSouth Bank, 825 So. 2d 
786 
( A l a . 2002) 
( h o l d i n g t h a t AmSouth Bank was e n t i t l e d 
t o a 
j u d g m e n t as a m a t t e r o f l a w b e c a u s e p r o v i s i o n s o f t h e 
UCC h a d 
d i s p l a c e d 
t h e p l a i n t i f f ' s 
common-law 
c a u s e 
o f a c t i o n f o r 
c o n v e r s i o n ) ; 
B e r t h o t v. S e c u r i t y P a c i f i c Bank o f A r i z o n a , 170 
A r i z . 
318, 3 2 1 , 823 P.2d 1326, 1329 
( A r i z . 
C t . App. 1991) 
( a f f i r m i n g t h e d i s m i s s a l o f t h e p l a i n t i f f ' s common-law 
c l a i m 
o f 
c o n v e r s i o n 
on t h e g r o u n d t h a t , b e c a u s e A r i z o n a ' s 
U n i f o r m 
C o m m e r c i a l 
Code 
" d i s p l a c e s " 
t h a t 
common-law 
c l a i m , 
t h e 
c o m p l a i n t 
f a i l e d t o s t a t e a c l a i m upon w h i c h 
r e l i e f 
c o u l d be 
g r a n t e d : 
"[W]hen a p r o v i s i o n o f t h e A r i z o n a U.C.C. 
d i s p l a c e s 
t h e 
common l a w on 
t h a t 
i s s u e , 
t h e common l a w no 
l o n g e r 
a p p l i e s . " ) . 
B r a n n o n 
f u r t h e r 
a r g u e s , 
h o w e v e r , 
t h a t t h e t r i a l 
c o u r t 
e r r e d i n h o l d i n g 
t h a t 
F i t t s v . A l a b a m a , 917 So. 2d 818 ( A l a . 
2 0 0 5 ) , d i c t a t e s t h a t A r t i c l e 4A d i s p l a c e d B r a n n o n ' s common-law 
t o r t 
c l a i m s . 
I n F i t t s , 
h u s b a n d - a n d - w i f e b u s i n e s s 
p a r t n e r s 
F r e d 
F i t t s a n d B e l l a n n 
F i t t s 
f i l e d a c o m p l a i n t t h a t 
i n c l u d e d 
common-law 
c l a i m s 
o f 
b r e a c h 
o f 
c o n t r a c t , 
n e g l i g e n c e , 
s u p p r e s s i o n , w a n t o n n e s s , a n d c o n s p i r a c y 
a g a i n s t 
t h e i r 
b u s i n e s s 
29 
1060637 a n d 1061059 
p a r t n e r 
James G e o r g e . 
G e o r g e a r g u e d , a n d t h e t r i a l 
c o u r t 
a g r e e d , t h a t t h e F i t t s e s ' 
c l a i m s were b a r r e d by t h e o n e - y e a r 
s t a t u t e o f r e p o s e i n § 7-4A-505, A l a . Code 1975. 
T h i s 
C o u r t 
a f f i r m e d t h e t r i a l c o u r t ' s j u d g m e n t , s p e c i f i c a l l y h o l d i n g 
t h a t 
A r t i c l e 4A d i s p l a c e d t h e F i t t s e s ' common-law 
c l a i m s . 
The F i t t s C o u r t n o t e d t h a t o r d i n a r i l y t h i s C o u r t l o o k s t o 
§ 7-1-103, A l a . Code 1975, f o r 
g u i d a n c e on t h e r e l a t i o n s h i p 
b e t w e e n t h e 
UCC a n d t h e 
common l a w . S e c t i o n 7-1-103 p r o v i d e s 
t h a t u n l e s s 
t h e y a r e d i s p l a c e d by " t h e 
p a r t i c u l a r p r o v i s i o n s 
o f " t h e UCC, 
t r a d i t i o n a l 
p r i n c i p l e s o f l a w a n d e q u i t y 
w i l l 
s u p p l e m e n t t h e p r o v i s i o n s o f t h e UCC. 
F i t t s , 917 So. 2d a t 
824 n.7. 
I n 
c o n c l u d i n g 
t h a t 
A r t i c l e 4A d i s p l a c e d t h e common-law 
c l a i m s a t i s s u e i n t h a t c a s e , h o w e v e r , t h e F i t t s C o u r t 
n o t e d 
and 
q u o t e d 
e x t e n s i v e l y 
f r o m 
t h e 
O f f i c i a l 
Comment 
t o 
§ 7-4A-102, w h i c h p r o v i d e s , i n p a r t : 
" I n t h e d r a f t i n g o f A r t i c l e 4A, a 
d e l i b e r a t e 
d e c i s i o n was made t o w r i t e on a c l e a n 
s l a t e a n d t o 
t r e a t a f u n d s t r a n s f e r as a u n i q u e method o f payment 
t o be g o v e r n e d 
by u n i q u e 
r u l e s 
t h a t 
a d d r e s s t h e 
p a r t i c u l a r 
i s s u e s 
r a i s e d b y t h i s m e t h o d o f p a y m e n t . 
A d e l i b e r a t e d e c i s i o n was a l s o made t o u s e p r e c i s e 
and d e t a i l e d r u l e s t o a s s i g n 
r e s p o n s i b i l i t y , 
d e f i n e 
b e h a v i o r a l 
norms, 
a l l o c a t e 
r i s k s 
a n d 
e s t a b l i s h 
l i m i t s on l i a b i l i t y , 
r a t h e r t h a n t o r e l y on 
b r o a d l y 
s t a t e d , 
f l e x i b l e p r i n c i p l e s . 
... 
30 
1060637 and 1061059 
"Funds t r a n s f e r s i n v o l v e c o m p e t i n g i n t e r e s t s -¬
t h o s e 
o f 
t h e b a n k s 
t h a t 
p r o v i d e 
f u n d s 
t r a n s f e r 
s e r v i c e s 
and 
t h e 
c o m m e r c i a l 
and 
f i n a n c i a l 
o r g a n i z a t i o n s 
t h a t u s e t h e s e r v i c e s , as w e l l as t h e 
p u b l i c 
i n t e r e s t . 
These 
c o m p e t i n g 
i n t e r e s t s were 
r e p r e s e n t e d 
i n t h e d r a f t i n g p r o c e s s and t h e y were 
t h o r o u g h l y 
c o n s i d e r e d . 
The 
r u l e s 
t h a t 
emerged 
r e p r e s e n t 
a c a r e f u l and d e l i c a t e b a l a n c i n g 
o f t h o s e 
i n t e r e s t s and a r e i n t e n d e d t o be t h e e x c l u s i v e means 
o f d e t e r m i n i n g 
t h e r i g h t s , d u t i e s and l i a b i l i t i e s o f 
t h e 
a f f e c t e d 
p a r t i e s i n any 
s i t u a t i o n c o v e r e d 
b y  
p a r t i c u l a r p r o v i s i o n s o f t h e a r t i c l e . 
C o n s e q u e n t l y , 
r e s o r t 
t o p r i n c i p l e s o f l a w o r e q u i t y 
o u t s i d e 
o f 
A r t i c l e 
4A 
i s n o t 
a p p r o p r i a t e 
t o 
c r e a t e 
r i g h t s , 
d u t i e s 
and 
l i a b i l i t i e s 
i n c o n s i s t e n t 
w i t h 
t h o s e 
s t a t e d i n t h i s 
a r t i c l e . " 
( E m p h a s i s added.) 
See g e n e r a l l y AmSouth Bank v. T i c e , 923 So. 
2d a t 1065 
( d i s c u s s i n g and a p p l y i n g 
c r i t e r i a f o r 
d e t e r m i n i n g 
w h e t h e r a s t a t u t o r y p r o v i s i o n has d i s p l a c e d a common-law c a u s e 
o f a c t i o n ) ; A m e r i c a n L i b e r t y I n s . Co. v . AmSouth Bank, 825 So. 
2d a t 794-95 
( s a m e ) . 
B r a n n o n 
c o n t e n d s 
t h a t 
t h e r i g h t s and 
r e s p o n s i b i l i t i e s 
p r o v i d e d 
by A r t i c l e 4A do n o t d i s p l a c e h e r common-law 
c l a i m s 
o f n e g l i g e n c e 
and w a n t o n n e s s i n t h i s c a s e b e c a u s e , she 
s a y s , 
A r t i c l e 
4A does n o t p u r p o r t 
t o p r o v i d e 
an e x c l u s i v e 
remedy 
w i t h 
r e s p e c t 
t o f a c t s 
l i k e 
t h o s e 
p r e s e n t e d 
h e r e . 
B r a n n o n 
c h a r a c t e r i z e s t h o s e f a c t s as i n v o l v i n g a " d e b i t t r a n s f e r , " and 
31 
1060637 and 1061059 
n o t 
a 
" c r e d i t 
t r a n s f e r 
w i t h i n 
t h e 
c o n t e m p l a t i o n 
o f 
A r t i c l e 4A."
1 1 
We n o t e that§ 7-4A-102 p r o v i d e s 
t h a t , w i t h e x c e p t i o n s n o t 
a p p l i c a b l e 
h e r e , 
A r t i c l e 
4A 
a p p l i e s 
t o 
f u n d s 
t r a n s f e r s 
d e f i n e d 
i n § 
7-4A-104. 
S e c t i o n 
7-4A-104 
d e f i n e s 
" f u n d s 
t r a n s f e r s " i n p e r t i n e n t p a r t as f o l l o w s : 
" [ T ] h e 
s e r i e s 
o f 
t r a n s a c t i o n s , 
b e g i n n i n g 
w i t h 
o r i g i n a t o r ' s payment o r d e r , made f o r t h e p u r p o s e o f 
m a k i n g payment t o t h e b e n e f i c i a r y o f t h e o r d e r . 
The 
t e r m 
i n c l u d e s 
any 
payment 
o r d e r 
i s s u e d 
by 
t h e 
o r i g i n a t o r ' s b a n k o r an i n t e r m e d i a r y 
b a n k 
i n t e n d e d 
t o c a r r y o u t t h e o r i g i n a t o r ' s payment 
o r d e r . " 
( E m p h a s i s added.) 
A c c o r d i n g t o § 7 - 4 A - 1 0 3 ( a ) ( 1 ) ( i i ) , A l a . 
Code 1975, f o r an 
i n s t r u c t i o n t o q u a l i f y as a "payment o r d e r " u n d e r A r t i c l e 4A, 
i t must be one w i t h r e s p e c t t o w h i c h " t h e r e c e i v i n g b a n k i s t o 
be 
r e i m b u r s e d 
b y 
d e b i t i n g 
an 
a c c o u n t 
o f , 
o r 
o t h e r w i s e 
r e c e i v i n g 
payment 
f r o m , 
t h e 
s e n d e r . " 
( E m p h a s i s 
added.) 
S e c t i o n 
7 - 4 A - 1 0 3 ( a ) ( 5 ) 
s t a t e s 
t h a t 
a 
" ' s e n d e r ' 
means t h e 
1 1 I n F i t t s , no q u e s t i o n was r a i s e d as t o w h e t h e r t h e f u n d s 
t r a n s f e r 
a t 
i s s u e 
was 
a 
" c r e d i t 
t r a n s f e r " 
o r 
a 
" d e b i t 
t r a n s f e r " ; a c c o r d i n g l y , F i t t s c o n t a i n s no d i s c u s s i o n 
r e g a r d i n g 
t h e 
d i s t i n c t i o n 
b e t w e e n t h o s e two 
t y p e s o f t r a n s f e r s . 
We 
t h e r e f o r e 
f i n d i t u n n e c e s s a r y , f o r p u r p o s e s o f d e c i d i n g t h e 
p r e s e n t 
c a s e , 
t o 
c o n s i d e r 
what 
b e a r i n g , 
i f a n y , 
t h a t 
d i s t i n c t i o n w o u l d h a v e h a d on t h e outcome i n F i t t s . 
32 
1060637 a n d 1061059 
p e r s o n 
g i v i n g t h e i n s t r u c t i o n t o t h e r e c e i v i n g b a n k . " 
F o r 
p u r p o s e s o f A r t i c l e 
4A a n d t h e p r o t e c t i o n i t p r o v i d e s 
t o 
r e c e i v i n g b a n k s i n r e l a t i o n t o c r e d i t t r a n s f e r s , § 7-4A-202(d) 
e x p a n d s t h e t e r m " s e n d e r " t o i n c l u d e " t h e c u s t o m e r i n whose 
name a payment o r d e r i s i s s u e d i f 
t h e o r d e r i s 
t h e a u t h o r i z e d 
o r d e r o f t h e c u s t o m e r u n d e r s u b s e c t i o n 
( a ) [ o f § 7 - 4 A - 2 0 2 ] , o r 
i t 
i s 
e f f e c t i v e 
as 
t h e 
o r d e r 
o f 
t h e 
c u s t o m e r 
u n d e r 
s u b s e c t i o n 
( b ) [ 
o f § 7 - 4 A - 2 0 2 ] . "
1 2 
1 2 S u b s e c t i o n s 
7-4A-202(a) a n d (b) s t a t e : 
" ( a ) A payment o r d e r 
r e c e i v e d b y t h e r e c e i v i n g 
b a n k 
i s t h e 
a u t h o r i z e d 
o r d e r 
o f 
t h e 
p e r s o n 
i d e n t i f i e d as s e n d e r i f t h a t p e r s o n 
a u t h o r i z e d t h e 
o r d e r o r i s o t h e r w i s e 
b o u n d by i t 
u n d e r t h e l a w 
o f 
a g e n c y . 
"(b) I f 
a bank a n d i t s c u s t o m e r have a g r e e d t h a t 
t h e 
a u t h e n t i c i t y o f payment 
o r d e r s 
i s s u e d t o t h e 
b a n k i n t h e name o f t h e c u s t o m e r as s e n d e r 
w i l l be 
v e r i f i e d p u r s u a n t t o a s e c u r i t y p r o c e d u r e , a payment 
o r d e r r e c e i v e d by t h e r e c e i v i n g b a n k i s 
e f f e c t i v e as 
t h e 
o r d e r 
o f 
t h e 
c u s t o m e r , 
w h e t h e r 
o r n o t 
a u t h o r i z e d , 
i f ( i ) t h e s e c u r i t y 
p r o c e d u r e 
i s a 
c o m m e r c i a l l y 
r e a s o n a b l e m e t h o d o f p r o v i d i n g s e c u r i t y 
a g a i n s t 
u n a u t h o r i z e d 
payment 
o r d e r s , 
a n d ( i i ) 
t h e 
b a n k p r o v e s 
t h a t i t a c c e p t e d t h e payment 
o r d e r i n 
g o o d 
f a i t h 
a n d i n c o m p l i a n c e 
w i t h 
t h e s e c u r i t y 
p r o c e d u r e a n d any w r i t t e n a g r e e m e n t o r i n s t r u c t i o n 
o f t h e c u s t o m e r 
r e s t r i c t i n g 
a c c e p t a n c e o f payment 
o r d e r s 
i s s u e d i n t h e name o f t h e c u s t o m e r . The b a n k 
i s 
n o t 
r e q u i r e d 
t o 
f o l l o w 
an 
i n s t r u c t i o n 
t h a t 
v i o l a t e s a w r i t t e n a g r e e m e n t w i t h t h e c u s t o m e r o r 
n o t i c e o f w h i c h i s n o t r e c e i v e d a t a t i m e a n d i n a 
manner a f f o r d i n g t h e bank a r e a s o n a b l e 
o p p o r t u n i t y 
33 
1060637 a n d 1061059 
P a r a g r a p h 
4 o f t h e 
O f f i c i a l 
Comment t o § 
7-4A-104, 
A l a b a m a 
Code 
1975, e x p l a i n s 
f u r t h e r 
t h e p r o v i s i o n 
t h a t a 
"payment o r d e r " e n t a i l s 
r e i m b u r s e m e n t t o t h e r e c e i v i n g b a n k 
f r o m " t h e s e n d e r " o r t h e s e n d e r ' s 
a c c o u n t : 
" T r a n s f e r s o f f u n d s made t h r o u g h t h e b a n k i n g 
s y s t e m a r e commonly 
r e f e r r e d t o as e i t h e r 
' c r e d i t ' 
t r a n s f e r s 
o r 
' d e b i t ' 
t r a n s f e r s . 
I n a 
c r e d i t 
t r a n s f e r 
t h e i n s t r u c t i o n 
t o p a y i s g i v e n b y t h e 
p e r s o n 
m a k i n g p a y m e n t . 
I n a d e b i t 
t r a n s f e r t h e 
i n s t r u c t i o n t o p a y i s g i v e n b y t h e p e r s o n 
r e c e i v i n g 
p a y m e n t . 
The 
p u r p o s e 
o f 
s u b p a r a g r a p h 
( i i ) 
o f 
s u b s e c t i o n 
( a ) ( 1 ) o f S e c t i o n 4A-103 i s t o i n c l u d e 
c r e d i t 
t r a n s f e r s i n A r t i c l e 4A a n d t o e x c l u d e 
d e b i t 
t r a n s f e r s . 
... 
A r t i c l e 
4A 
i s 
l i m i t e d 
t o 
t r a n s a c t i o n s i n w h i c h t h e a c c o u n t t o be d e b i t e d b y 
t h e 
r e c e i v i n g b a n k i s t h a t o f t h e p e r s o n i n whose 
name t h e i n s t r u c t i o n i s 
g i v e n . "
1
3 
I n t h e p r e s e n t c a s e , i t 
was c o n t e m p l a t e d t h a t 
B a n k T r u s t , 
t h e 
r e c e i v i n g b a n k , w o u l d b e , a n d i t 
was, r e i m b u r s e d b y t h e 
e s t a t e a c c o u n t . 
T h u s , i n o r d e r f o r 
t h e i n s t r u c t i o n g i v e n i n 
t h i s c a s e t o q u a l i f y as a "payment o r d e r , " i t 
must have b e e n 
g i v e n b y o r on b e h a l f o f t h e M o r r i s o n e s t a t e as t h e s e n d e r . 
t o a c t 
on i t 
b e f o r e t h e payment o r d e r i s a c c e p t e d . " 
1 3 P a r a g r a p h 
4 o f t h e O f f i c i a l 
Comment t o § 
7-4A-104 
p r o v i d e s t h e f o l l o w i n g e x a m p l e o f a c r e d i t 
t r a n s f e r , where X 
i s t h e owner o f an a c c o u n t : 
" W i t h r e s p e c t t o X's i n s t r u c t i o n 
g i v e n t o Bank A, Bank A w i l l be r e i m b u r s e d b y d e b i t i n g X's 
a c c o u n t o r o t h e r w i s e r e c e i v i n g payment f r o m X." 
34 
1060637 a n d 1061059 
As n o t e d , § 7-4A-202(d) p r o v i d e s 
t h a t a " s e n d e r " 
i n c l u d e s 
a c u s t o m e r i n whose name a payment 
o r d e r i s i s s u e d 
" i f 
t h e 
o r d e r i s 
t h e a u t h o r i z e d o r d e r o f t h e c u s t o m e r u n d e r 
s u b s e c t i o n 
( a ) , o r i t 
i s e f f e c t i v e as t h e o r d e r o f t h e c u s t o m e r 
u n d e r 
s u b s e c t i o n 
( b ) . 
S e c t i o n 1 o f t h e O f f i c i a l Comment f o l l o w i n g 
§ 7-4A-203 
e x p l a i n s 
t h a t " [ a ] 
p e r s o n i n whose name a payment 
o r d e r i s i s s u e d i s c o n s i d e r e d t o be t h e s e n d e r o f t h e o r d e r i f 
t h e 
o r d e r 
i s ' a u t h o r i z e d ' 
as s t a t e d i n s u b s e c t i o n 
(a) [ o f 
§ 7-4A-202] 
o r i f t h e o r d e r 
i s ' v e r i f i e d ' 
p u r s u a n t t o a 
s e c u r i t y 
p r o c e d u r e 
i n c o m p l i a n c e 
w i t h 
s u b s e c t i o n 
(b) [ o f 
§ 7 - 4 A - 2 0 2 ] . " 
S u b s e c t i o n 
(b) i s 
n o t a p p l i c a b l e i n t h i s 
c a s e ; 
s u b s e c t i o n 
(a) o f § 7-4A-202 p r o v i d e s 
t h a t " [ a ] payment 
o r d e r 
r e c e i v e d b y t h e r e c e i v i n g b a n k i s 
t h e a u t h o r i z e d o r d e r o f 
t h e 
p e r s o n 
i d e n t i f i e d 
as s e n d e r i f t h a t 
p e r s o n 
a u t h o r i z e d t h e  
o r d e r o r i s o t h e r w i s e 
b o u n d b y i t 
u n d e r t h e l a w s o f a g e n c y . " 
( E m p h a s i s added.) 
B r a n n o n 
a r g u e s on a p p e a l 
t h a t t h e f u n d s 
t r a n s f e r s a t 
i s s u e i n t h i s c a s e were n o t c r e d i t 
t r a n s f e r s f o r 
p u r p o s e s o f 
t h e 
p r o t e c t i o n 
a f f o r d e d 
b a n k s b y 
A r t i c l e 
4A. 
T h e r e f o r e , 
a c c o r d i n g t o B r a n n o n , h e r common-law c l a i m s o f n e g l i g e n c e a n d 
w a n t o n n e s s a r e 
n o t d i s p l a c e d . 
She n o t e s t h a t McCoy i n s t r u c t e d 
35 
1060637 and 1061059 
B a n k T r u s t t o make t h e p a y m e n t s t o h i s 
l a w f i r m , a c r e d i t o r o f 
t h e M o r r i s o n 
e s t a t e , as s u p p o r t i v e o f h e r p o s i t i o n . 
We 
a g r e e 
t h a t 
A r t i c l e 
4A 
a p p l i e s 
o n l y 
t o 
" c r e d i t 
t r a n s f e r s " as d e f i n e d i n t h a t 
a r t i c l e and t h a t i t d i s p l a c e s 
common-law 
c a u s e s 
o f 
a c t i o n 
o n l y 
i n r e l a t i o n 
t o 
c r e d i t 
t r a n s f e r s as so d e f i n e d . 
B e c a u s e t h e t r i a l 
c o u r t a p p e a r s t o 
h a v e 
i g n o r e d 
o r r e j e c t e d 
t h i s 
p r o p o s i t i o n i n e n t e r i n g i t s 
j u d g m e n t as a m a t t e r o f l a w i n f a v o r o f B a n k T r u s t , and b e c a u s e 
i t c a n n o t be s a i d as a m a t t e r o f l a w on t h e r e c o r d 
b e f o r e us 
t h a t t h e t r a n s f e r s a t i s s u e 
c o n s t i t u t e 
c r e d i t t r a n s f e r s as 
d e f i n e d i n A r t i c l e 4A, t h a t j u d g m e n t i s due t o be 
r e v e r s e d . 
I n so h o l d i n g , h o w e v e r , we s t o p 
s h o r t o f c o n c l u d i n g 
t h a t t h e 
f u n d s 
t r a n s f e r s a t i s s u e d i d n o t , i n f a c t , 
c o n s t i t u t e 
s u c h 
c r e d i t t r a n s f e r s . 
I n d e e d , as we h a v e a l r e a d y n o t e d , t h e r e i s 
some e v i d e n c e a l r e a d y i n 
t h e r e c o r d t h a t w o u l d t e n d t o s u p p o r t 
a f i n d i n g t h a t t h e t r a n s f e r s 
f e l l w i t h i n t h e a u t h o r i t y g r a n t e d 
by B r a n n o n t o McCoy and t h a t , f o r t h a t r e a s o n , t h e 
M o r r i s o n 
e s t a t e s h o u l d be deemed t h e " s e n d e r " i n 
whose name t h e 
payment 
o r d e r was i s s u e d . 
A l s o , c o n s i s t e n t w i t h o u r d i s c u s s i o n a b o v e , 
f u r t h e r d i s c o v e r y 
a p p e a r s t o be i n o r d e r as t o t h e e x t e n t t o 
w h i c h McCoy was a u t h o r i z e d by B r a n n o n t o make t h e t r a n s f e r s . 
36 
1060637 a n d 1061059 
See § 7 - 4 A - 2 0 2 ( a ) . By t h e 
same t o k e n , a g e n u i n e i s s u e o f f a c t 
r e m a i n s as t o w h e t h e r B r a n n o n , e v e n i f 
she d i d 
n o t a u t h o r i z e 
McCoy t o i n i t i a t e t h e t r a n s f e r , 
" i s o t h e r w i s e 
b o u n d b y 
[ t h e 
t r a n s f e r s ] u n d e r t h e l a w o f a g e n c y " f o r 
p u r p o s e s o f § 7-4A-
202. 
A c c o r d i n g l y , we r e v e r s e t h e t r i a l 
c o u r t ' s j u d g m e n t as a 
m a t t e r o f l a w 
as t o B r a n n o n ' s n e g l i g e n c e a n d 
w a n t o n n e s s c l a i m s 
and remand t h e c a u s e f o r 
f u r t h e r 
p r o c e e d i n g s . 
I V . 
C o n c l u s i o n 
B a s e d on t h e f o r e g o i n g , we 
r e v e r s e 
t h e t r i a l 
c o u r t ' s 
p a r t i a l summary j u d g m e n t i n f a v o r o f B r a n n o n a n d i t s j u d g m e n t 
as a m a t t e r o f l a w i n f a v o r o f B a n k T r u s t . 
1060637 -- A P P L I C A T I O N OVERRULED; OPINION OF JULY 3 1 , 
2009, WITHDRAWN; OPINION SUBSTITUTED; REVERSED AND REMANDED. 
1061059 -- A P P L I C A T I O N OVERRULED; OPINION OF JULY 3 1 , 
2009, WITHDRAWN; OPINION SUBSTITUTED; REVERSED AND REMANDED. 
Cobb, C . J . , 
a n d L y o n s , 
W o o d a l l , 
S t u a r t , 
S m i t h , 
B o l i n , 
P a r k e r , a n d Shaw, J J . , c o n c u r . 
37