Anderson v. Branch Banking & Trust Co.

56 F. Supp. 3d 1345, 85 U.C.C. Rep. Serv. 2d (West) 83, 2014 U.S. Dist. LEXIS 154767, 2014 WL 5522478
CourtDistrict Court, S.D. Florida
DecidedOctober 31, 2014
DocketCase No. 13-CIV-62381
StatusPublished
Cited by4 cases

This text of 56 F. Supp. 3d 1345 (Anderson v. Branch Banking & Trust Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anderson v. Branch Banking & Trust Co., 56 F. Supp. 3d 1345, 85 U.C.C. Rep. Serv. 2d (West) 83, 2014 U.S. Dist. LEXIS 154767, 2014 WL 5522478 (S.D. Fla. 2014).

Opinion

ORDER ON DEFENDANT’S MOTION TO DISMISS

BETH BLOOM, District Judge.

This matter is before the Court upon Defendant Branch Banking and Trust Company’s Motion to Dismiss Plaintiffs’ Third Amended Complaint, ECF No. [78]. The Court has reviewed the motion, all supporting and opposing filings, and the record in this case, and is otherwise fully advised in the premises. For the reasons that follow, Defendant’s motion is now granted in part and denied in part.

I. BACKGROUND

Plaintiffs in this matter are fifteen current and former football players employed by teams in the National Football League (collectively, “Plaintiffs”). ECF No. [75] at ¶ 22. Each individual Plaintiff entered into a separate “Client Service Agreement” with Pro Sports Financial, Inc. (“Pro Sports”), under which Pro Sports would provide each player with tax planning, business counseling, and concierge services. Id. at ¶ 23. By virtue of this relationship, Pro Sports deposited tens of millions of dollars belonging to Plaintiffs into accounts at Defendant Branch Banking and Trust Company (“BB & T”), which maintained a special division dedicated to servicing athletes and other high-wealth individuals in the sports and entertainment industry. Id. at ¶¶ 26-28. Prior to the opening, of each account, BB & T was provided with copies of the Client Service Agreement, thereby informing BB & T of the scope of the services provided by Pro Sports to each Plaintiff. Id. at ¶ 29.

Notwithstanding the Client Service Agreement, Plaintiffs allege that some of the accounts Pro Sports opened were illegitimate, opened by Pro Sports employees using forged signatures. Id. at ¶ 30. Some accounts were opened and maintained by BB & T employee Steve Johnson as “power of attorney accounts” without Plaintiffs’ informed consent between October 16 and 17, 2006 (the “Group A Accounts”), using monies previously held on deposit by these Plaintiffs with BB & T (the “Group A Plaintiffs”).1 See id. at ¶¶ 51-55, 60. However, none of the Group A Plaintiffs had ever executed a power of attorney relating to the individual Group A Accounts prior to the date that they were opened. Id. at ¶¶ 61-62. Although Pro Sports had properly executed signature cards for the Group A Plaintiffs, the cards were solely applicable to the validly opened accounts. See id. at ¶ 56. Critically, the Group A Accounts listed Pro Sports address as the mailing address on the account, thereby preventing the Group A Plaintiffs from realizing the inappropriate and unauthorized activity. Id. at ¶¶ 57-59. Thus, BB & T allowed the Group A Accounts to be opened, utilized, and maintained without following protocols and without due care with respect to the authenticity of the signature cards associated with the account. Id. at ¶¶ 65-69. Eventually, during the summer of 2012, the Group A Plaintiffs became aware of the [1348]*1348Group A Accounts and the misuse of their funds. Id. at ¶ 71.

Additional accounts “power of attorney accounts” were also opened between October 11, 2006 and March 27, 2008 (the “Group B Accounts”). Id. at ¶¶ 82-83, 85. The designated attorneys in fact were Pro Sports employees. Id. at ¶ 84. Pursuant to the Client Service Agreements, the Group B Accounts were to be used strictly for concierge or bill pay services. Id. at ¶¶ 87-88. Despite this limitation, BB & T allowed unauthorized Pro Sports employees, not the authorized attorney’s in fact for the accounts, to open the additional power of attorney accounts on behalf of the remaining Plaintiffs (the “Group B Plaintiffs”).2 See id. at ¶¶ 89-91. After the improper accounts were opened, unauthorized individuals were permitted to wire significant sums of, Group B Plaintiffs’ monies for unauthorized or improper lending or business purposes without the Group B Plaintiffs’ knowledge and/or consent. Id.

Notably, BB & T then allowed a multitude of suspicious withdrawals from the illegitimate accounts that exceeded the scope of the services identified in the Client Services Agreement, repeatedly failing to make any effort to confirm authorization for such withdrawals with the Plaintiffs named on the accounts. Id. at ¶¶ 35, 36. For instance, BB & T permitted Peggy Lee, a Pro Sports employee, as well as other Pro Sports employees, to make “CashLink” wire transfers when none of these individuals had the Power of Attorney or other authority to do so. See id. at ¶¶ 37-41. Other unauthorized transfers were also made by individuals lacking authority, in contravention of the appropriate safeguards, controls, and internal BB & T procedures. See id. at ¶ 37, 42-43. According to Plaintiffs, many of these transfers were used to invest Plaintiffs’ funds in a casino project in Alabama known as “Center Stage a/k/a Country Crossing” (the “Country Crossing Project”). Id. at ¶ 44. The primary aspect of the Country Crossing Project was casino-style gambling, which was outlawed under Alabama law in July 2012, causing the Country Crossing Project to fail. Id. at ¶ 45. As a result of the failed project and other transactions — all of which occurred without Plaintiffs’ knowledge, authorization, or consent — Plaintiffs lost millions of dollars. See id. at ¶¶ 46-47, 49.

On October 31, 2013, Plaintiffs filed their initial Complaint, ECF No. [1]. The day after filing, and prior to Defendant’s response, Plaintiffs filed an eleven-count Amended Complaint, ECF No. [8]. On January 6, 2014, BB & T moved to dismiss the Amended Complaint. See ECF No. [12]. On May 19, -2014, the Honorable Robin S. Rosenbaum entered an order granting in part and denying in part BB & T’s Motion to Dismiss. See ECF No. [35]. Plaintiffs then filed their Second Amended Complaint, containing a mere four counts. See ECF No. [45]. Again, BB & T requested the Court to dismiss the operative Complaint; however, in response, Plaintiffs sought leave to amend, and such leave was granted. See ECF Nos. [67] and [73]. Accordingly, presently before the Court is Plaintiffs’ Third Amended Complaint, which contains four counts similar to those presented in the Second Amended Complaint. Compare ECF No. [45] with ECF No. [75]. Under Count I, negligence, the Group A Plaintiffs contend that BB & T was negligent in the operation and maintenance of the accounts with respect to the safekeeping of funds, including obtaining [1349]*1349proper authorization from the account holders. See ECF No. [75] at ¶¶ 102-07. Count II asserts a claim for breach of contract as to the Group B Plaintiffs, alleging that upon the opening of each Group B Account, the Group B Plaintiffs and BB & T entered into a contractual relationship which was breached when BB & T accepted and acted upon unauthorized instructions on the Group B Accounts resulting in illegitimate transfers. Id. at ¶¶ 108-18. Lastly, both the Group A Plaintiffs and the Group B Plaintiffs bring a claim for refund of unauthorized and ineffective funds transfer under Chapter 670, Florida Statutes (Counts III and IV, respectively). Id. at ¶¶ 119-132. Yet again, Defendant BB & T seeks dismissal, asserting that even after Plaintiffs’ several amendments, the Third Amended Complaint fails to comport with Judge Rosenbaum’s Order and, otherwise, fails to state a claim upon which relief can be granted. See

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56 F. Supp. 3d 1345, 85 U.C.C. Rep. Serv. 2d (West) 83, 2014 U.S. Dist. LEXIS 154767, 2014 WL 5522478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anderson-v-branch-banking-trust-co-flsd-2014.