Bank Not at Fault for Opening Account for Thieving Employee

Want a scary story? Take a look at High court affirms summary judgment for bank. Adjuster opens bank account and deposits money that ought to have gone to employer. Indiana's Supreme Court says bank owed no duty to employer and therefore no liability against the bank.

What's so important about this? Employee has no assets to repay the money. Employer cannot touch bank for compensation. Employer out all that money (and the attorney fees, too).

I pondered over this case for a while. I had something similar a few years back and I am still trying to collect the judgment. My client got lucky - it had internal procedures for following up on payments. That is about the only solution for this kind of case. Businesses need internal procedures for following up on payments that go through agents and/or employees. Once the barn door is open... good luck getting the money back.