Deadman v. Valley Nat. Bank of Arizona

743 P.2d 961, 154 Ariz. 452, 1987 Ariz. App. LEXIS 528
CourtCourt of Appeals of Arizona
DecidedSeptember 29, 1987
Docket1 CA-CIV 8953
StatusPublished
Cited by7 cases

This text of 743 P.2d 961 (Deadman v. Valley Nat. Bank of Arizona) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deadman v. Valley Nat. Bank of Arizona, 743 P.2d 961, 154 Ariz. 452, 1987 Ariz. App. LEXIS 528 (Ark. Ct. App. 1987).

Opinion

OPINION

BROOKS, Judge.

This is an appeal from a judgment entered upon a directed verdict, holding defendant, Valley National Bank, liable to plaintiff, David G. Deadman, for false arrest. The bank also appeals from the denial of its motion for a new trial or for judgment notwithstanding the verdict, as to the amount of damages awarded by the jury.

Phoenix police officers arrested Dead-man in the lobby of the bank’s Paradise Valley Mall branch after a bank employee called police to report her belief that Dead-man was attempting to use a fraudulent credit card. The officers detained Dead-man for half an hour and then released him when it was determined that his credit card was valid.

The dispositive question on appeal is whether either party was entitled to judgment as a matter of law on the issue of the bank’s liability for instigating Deadman’s wrongful arrest. Because we believe that the matter was one for the jury to decide, we remand for further proceedings.

FACTS AND PROCEDURAL HISTORY

The relevant facts are not in dispute. Around July 15, 1982, while staying with relatives in Scottsdale, Arizona, Deadman, then a Michigan resident, arranged to buy a truck. The seller allowed Deadman until the following Saturday afternoon to pay for it. Before 9:00 a.m. on Saturday, July 17, 1982, Deadman joined others waiting for the Paradise Valley Mall branch of the Valley National Bank to open for business. Deadman was dressed in cutoff jeans, a tank-top shirt, tennis shoes, and a baseball cap.

Once inside the bank, Deadman asked teller Leslie Bertram for a $2,000 cashier’s check payable to the seller of the truck. Deadman gave Bertram his Michigan driver’s license and his Merrill Lynch VISA card. The license had Deadman’s picture and signature on it. The VISA card, which also bore Deadman’s signature, permitted direct withdrawal of money from his account with Merrill Lynch, which contained more than $2,000.

Bertram tried to get authorization for the transaction, but was unable to get through to the computer by telephone. She went to Pam Barrett, the branch operations manager and acting supervisor, and explained the situation. Bertram thought that there might be some problem with her pass code because she was working at the Paradise Valley Mall branch only temporarily. When Bertram telephoned again for computer authorization, this time using Barrett’s pass code, a woman answered and told her that there was some trouble with the computer. The woman said that she would go to another room to get the authorization and would then call Bertram back. Bertram told Deadman that there would be a delay in processing his transaction. She testified that the possibility that Deadman’s card was fraudulent had never crossed her mind; nothing about the transaction aroused her suspicions.

Meanwhile, Barrett received a telephone call from Irma Chavez, the operations supervisor at the bank’s Metrocenter branch. The night before, someone at the Metrocenter branch had telephoned Barrett to ask her to read one of the bank’s warning bulletins over the telephone. The bulletin concerned a gang that was operating in the Phoenix area using stolen or forged credit cards to obtain cash advances. The purpose of Chavez’ telephone call that morning was to bring Barrett up to date on the *455 events of the previous night, when a man had come into the Metrocenter branch near closing time and had asked for a $2,000 cash advance. He had presented an out-of-state license and credit card. The credit card had proved to be fraudulent, and police had arrested the man.

As she spoke with Chavez, Barrett had Deadman’s driver’s license, credit card, and signed cash advance form on the desk before her. She became alarmed at the thought that Deadman’s card might also be fraudulent. Barrett knew that fraudulent transactions were normally attempted when the bank was least organized and that Paradise Valley Mall and Metrocenter were the only branches open on Saturday mornings. She observed Deadman pacing around and thought he looked nervous. She also believed that he appeared rather young to have a $2,000 line of credit. She testified: “[I]t just looked to me to be the same type of situation that Irma had dealt with the night before, and so the judgment was made to call the police in at that moment.”

Barrett testified that before Deadman’s arrest, she did not know that the genuineness of a credit card could be tested by scratching the back of the card. Neither did she know whether the bank had a book that listed the numbers of stolen or forged cards. She did know of a backup telephone number that could be used to get authorization on the credit card if communication could not be established using the main number. She did not try to use the backup number before calling the police, however, because she was already on the phone with Irma Chavez. Barrett thought that if she were to hang up, and if Deadman were in fact using a forged card, he might become alarmed and leave the branch. Barrett testified:

And so while I was on the phone with her it was agreed between us that I shoüld remain on the phone with her so as not to alert the customer, because if he was actually a criminal in the branch we didn’t want him to leave. We would rather have apprehended him.

Barrett and Chavez therefore agreed that Barrett would stay on the phone to avoid alerting Deadman and that the police would be contacted from the Metrocenter branch. At Chavez’ request, Kathy Schoech, another employee at the Metro-center branch, made the call. The information transmitted to the police was that “the Paradise Valley Mall branch believed that they had a man there presenting some kind of fraudulent credit card.” Barrett and Chavez testified that they all wanted the police to get to the Paradise Valley Mall branch as quickly as possible so that the police could “apprehend” the man and find out what was going on.

Barrett testified that the bank had surveillance cameras and that, to the best of her knowledge, they were functioning on the date of the incident. She acknowledged that she might have refused to process Deadman’s transaction, taking his picture before he left. In fact, someone did activate the cameras, and pictures of the incident were taken.

While Schoech was in contact with the police, the police dispatcher sent out a “hot call,” a two- or three-second radio tone denoting an emergency. The dispatcher then transmitted further information indicating that there was a “forgery in progress” at the Valley National Bank in Paradise Valley Mall; she explained what was being forged and described the suspect and his location within the bank. One of the responding officers testified that he had not asked the dispatcher what proof of forgery there was. He explained:

When we have a crime in progress we would like to get the situation under control first and investigate. Us figuring that a bank is going to call us on a forgery, they have more knowledge of what to look for in a forgery in my assumption than an officer would.

Back at the Paradise Valley Mall branch, Deadman asked Bertram how long he would have to wait for his check. She told him that it would be quite a while. Dead-man then left the bank for about five minutes, bought a cup of coffee, and brought it back with him. Again he asked Bertram if

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Bluebook (online)
743 P.2d 961, 154 Ariz. 452, 1987 Ariz. App. LEXIS 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deadman-v-valley-nat-bank-of-arizona-arizctapp-1987.