Negligent Enablement:Galaxie v. BofA

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David A. Szwak

Negligent Enablement:Galaxie v. BofA

Postby David A. Szwak » Tue Nov 01, 2005 5:19 am

Galaxie Corp. v. Bank of America, case no. 97-70275, [U.S.D.C. S.D. Mich. 6/16/97]

Plaintiff sued under various theories due to credit card fraud wherein he alleged Bank of America [BOA] enabled the defrauder. BOA sent an unsolicited credit card application to plaintiff at his employment address. It was intercepted and returned by the defrauder, using plaintiff’s identifiers. BOA issued the card to the defrauder’s address in plaintiff’s name [identity]. The court held that “plaintiff cannot prevail on their claim of negligent issuance of a credit card, as they have failed to present any facts upon which a court could find that BOA was the proximate cause of any damages.” The court [erroneously] used the “intervening, superseding cause” analysis and ignored the fact that BOA’s neglect and reckless/wanton behavior followed the criminal actions. In short, nothing intervened or superseded BOA’s fault in continuing to allow fraud charges and error-ridden reports dunning the plaintiff. BOA directed the false reportings to its agents, the credit bureaus for reproduction and publication.

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