Opinion ID: 1678589
Heading Depth: 3
Heading Rank: 1

Heading: Gilbert's negligence claim.

Text: Gilbert claims that UNB was negligent in permitting CLM funds to be fraudulently transferred to a phony corporation. He argues that there were numerous red flags during UNB's dealings with Etter, Ensz, and Nelson which should have led to further inquiry and investigation by UNB prior to transferring the funds. Gilbert claims that UNB's actions raise a jury question and that the trial court improperly granted summary judgment as to UNB's negligence. He cites Lovell v. Oahe Electric Co-op, 382 N.W.2d 396, 399 (S.D.1986), which states that questions relating to negligence ... are generally questions of fact for the jury. Actionable negligence requires a duty on the part of the defendant to protect the plaintiff. Erickson v. Lavielle, 368 N.W. 2d 624 (S.D.1985); Blumhardt v. Hartung, 283 N.W.2d 229 (S.D.1979). The determination of whether a duty exists is a question of law for the court. Erickson, supra; 57 Am.Jur.2d Negligence § 37 (1971). For the law to impose a duty, a sufficient relationship must exist between the parties. Erickson, supra ; Cuppy v. Bunch, 88 S.D. 22, 214 N.W.2d 786 (1974). UNB persuasively argues that it owed no duty to Gilbert as an outsider to the transaction. Courts have recognized that a stranger to a bank-depositor relationship is owed no duty in the absence of a contract, statute, or other special circumstance giving rise to such a duty. Sheiman v. Lafayette Bank & Trust Co., 4 Conn.App. 39, 492 A.2d 219 (1985); Portage Aluminum Co. v. Kentwood Nat'l Bk., 106 Mich.App. 290, 307 N.W.2d 761 (1981); Pennsylvania National Turf Club Inc. v. Bank of West Jersey, 158 N.J.Super. 196, 385 A.2d 932 (1978), petition for certification denied 77 N.J. 506, 391 A.2d 520 (1978). Gilbert presents no authorities to challenge this position, nor does he argue that special circumstances exist to create such a duty. In absence of such special circumstances UNB owed no duty to Gilbert as a matter of law. Erickson, supra . Therefore, the trial court properly granted summary judgment on Gilbert's negligence claim.