Court Opinion

ID: 9486312
Source: CourtListenerOpinion
Date Created: 2023-08-05 11:44:10.862323+00
Date Added: 2024-06-11T17:51:38.450743
License: Public Domain

FAGG, Circuit Judge,
dissenting.
Although I agree with much of Judge John R. Gibson’s excellent opinion for the court, I do not agree that “[t]he language in the agreements before us lacks the requisite clarity needed to indemnify Boatmen’s for its misdirection of the funds.” Ante at 1259. Instead, I believe the agreements’ provisions require “Continental to indemnify Boatmen’s [when] Boatmen’s erroneously relied on an incorrect LBID provided by a Continental customer.” Id. Thus, unless Boatmen’s has failed to exercise ordinary care, the indemnification clauses protect Boatmen’s from liability. See Mo.Ann.Stat. § 400.4-103(1) (Vernon 1965) (bank may not disclaim responsibility for failure to exercise ordinary care). Contrary to the court’s view, I do not believe the cases the court relies on support the conclusion that in the circumstances of this case “Boatmen’s payment of check proceeds to a lock box other than [Continental’s] ... constitutes lack of ordinary care as a matter of law.” Ante at 1259. In my view, the reasonableness of Boatmen’s actions raises a factual dispute that precludes summary judgment. I would reverse the district court’s grant of summary judgment for Continental and remand for trial.