Opinion ID: 1125005
Heading Depth: 3
Heading Rank: 4

Heading: The Superior Court Erred in Entering a Directed Verdict against NCC for Its Breach of Contract, Breach of Fiduciary Duty and Negligence Claims.

Text: The superior court entered a directed verdict against NCC on its independent claims, relying upon a lack of evidence of any damages caused by these legal theories. However, NCC was prevented from presenting damage evidence. The superior court ruled that the bank could not be liable for damages claimed for the bank's acts after November 5 or 6, 1992, because Johnston v. All State Roofing & Paving Co., 557 P.2d 770 (Alaska 1976), prevents claimants from recovering for damages caused by filing an interpleader. NCC's complaint does seek to recover for damages caused by filing the interpleader. However these damages do not, according to NCC's complaint, arise from the interpleader, but from NBA's breach of contract, breach of fiduciary duty, and negligence. NCC claims that, but for NBA's actions, there would be no competing claims to the funds in the account, and therefore no need to interplead. NCC presented evidence that the bank did not follow proper banking procedures, and did not follow the requirements of its contract with NCC. NCC claims NBA permitted the Higashis to delete the Browns from NCC's account without documentation, and without notifying the Browns. The account agreement states, All persons authorized by the account to have access to the account of any corporation or unincorporated association must notify the bank in writing of any change in the corporate officers that would affect the terms of the contract. The superior court erred by directing a verdict on these claims for the reasons expressed above in Part IV.B. NBA cannot be held liable for damages that were caused solely by NBA's decision to interplead the funds. NBA can be liable for damages resulting from the interpleader if NCC proves NBA breached a duty which created the basis that permitted NBA to interplead the funds.