Forrence Orchards, Inc. v. TD Bank

CourtDistrict Court, N.D. New York
DecidedFebruary 12, 2025
Docket8:24-cv-00525
StatusUnknown

This text of Forrence Orchards, Inc. v. TD Bank (Forrence Orchards, Inc. v. TD Bank) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Forrence Orchards, Inc. v. TD Bank, (N.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK

FORRENCE ORCHARDS, INC.,

Plaintiff, 8:24-cv-525 (BKS/PJE)

v.

TD BANK and TRUIST BANK,

Defendants.

Appearances: For Plaintiff: Jed M. Weiss Mandelbaum Barrett, P.C. 570 Lexington Avenue, 21st Floor New York, NY 10022 For Defendant TD Bank: Katelynn Gray Duane Morris LLP 1540 Broadway New York, NY 10036

John I. Coster IV Duane Morris LLP 230 Park Avenue, Suite 1130 New York, NY 10169

Michael S. Zullo Duane Morris LLP 30 South 17th Street Philadelphia, PA 19103 For Defendant Truist Bank: Stephen J. Steinlight Sophia N. Dauria Troutman Pepper Hamilton Sanders LLP 875 Third Avenue New York, NY 10022 Hon. Brenda K. Sannes, Chief United States District Judge: MEMORANDUM-DECISION AND ORDER I. INTRODUCTION Plaintiff Forrence Orchards, Inc. brings this diversity action against Defendants TD Bank1 and Truist Bank (“Truist”), asserting, as against TD Bank only, claims for breach of contract and negligence; as against Truist only, a claim for unjust enrichment; and as against

both, a claim for deceptive acts or practices prohibited under Section 349 of the New York General Business Law.2 (Dkt. No. 1). Currently before the Court are Defendants’ motions to dismiss the complaint pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure. (Dkt. Nos. 15, 20). The motions are fully briefed. (Dkt. Nos. 15-1, 20-1, 27, 28, 29). For the following reasons, the Court grants Defendants’ motions to dismiss. II. FACTS3 Plaintiff is an “apple orchard farm located in Peru, New York.” (Dkt. No. 1, ¶ 14). Plaintiff established a relationship with TD Bank, “a national bank with a net worth of approximately $150 billion,” around 1990 and “opened two accounts with TD Bank, one being its checking account that Plaintiff intended to use in the regular course of its business activities, and the other to manage the funds earmarked for its employees’ profit-sharing plan accounts.”

(Id. ¶¶ 17–18). As part of their dealings, Plaintiff and TD Bank entered into the “Cash Management Services Agreement,” (the “CMSA”) of which paragraph 10 states:

1 TD Bank states that it has been “incorrectly named” in the complaint, and that its actual name is “TD Bank, N.A.” (Dkt. No. 20-1, at 6 n.1). 2 Plaintiff’s claim refers to the “New York BCL § 349,” (Dkt. No. 1, at 7), however it is clear from both the context of the claim and Plaintiff’s later filings that Plaintiff meant to refer to Section 349 of the New York General Business Law, (see e.g., Dkt. No. 27, at 19 (“[Plaintiff] has stated a plausible NY Gen. Bus. Law ¶ 349 claim contrary to both TD [Bank] and Truist’s assertions.”)). 3 The facts are drawn from Plaintiff’s complaint, (Dkt. No. 1). The Court assumes the truth of, and draws reasonable inferences from, the well-pleaded factual allegations. Faber v. Metro. Life Ins. Co., 648 F.3d 98, 104 (2d Cir. 2011). Fraud Detection/Deterrence; Positive Pay. Bank offers certain products and services such as Positive Pay (with or without positive payee validation), ACH Positive Pay, and Account blocks and filters that are designed to detect and/or deter check, automated clearing house (“ACH”) or other payment system fraud. While no product or service will be completely effective, Bank believes that the products and services it offers will reduce the likelihood that certain types of fraudulent items or transactions will be paid against Customer’s Account. Failure to use such products or services could substantially increase the likelihood of fraud.

(Id. ¶ 19). Additionally, paragraph 14 of Appendix II to the CMSA states: Reversing Entries/Files. If Customer discovers that any Entry or file Customer has initiated was in error, it may use the [ACH Services] to correct the Entry or file by initiating a reversal or adjustment, or Customer may notify Bank of such error and Bank will utilize reasonable efforts on behalf of Customer, consistent with the NACHA Rules, to correct the Entry or file by initiating a reversal or adjustment of such Entry or file. (Id. ¶ 20). On or about October 24, 2023, Plaintiff’s accounts with TD Bank experienced multiple transfers that Plaintiff had not authorized or initiated and of which Plaintiff had no knowledge. (See id. ¶¶ 23–27). The first transfer took approximately $440,000 from the Profit-Sharing Account and moved it to the Checking Account. (Id. ¶ 24). After this transfer took place, $99,265 was wired from the Checking Account to an account at JP Morgan Chase, $199,825 was wired from the Checking Account to an account at Bank of America, and $399,685 was wired from the Checking Account to an account at Truist. (See id. ¶¶ 25–26). Plaintiff learned about the unauthorized transfers after being contacted by Bank of America. (Id. ¶ 27). Plaintiff then “logged into its TD Bank account to realize the magnitude of the theft that occurred,” and “[p]romptly thereafter, Plaintiff contacted TD Bank, as well as the New York State Police and the Federal Bureau of Investigations.” (Id. ¶¶ 27–28). According to Plaintiff, “TD bank was completely uncooperative in Plaintiffs [sic] attempts to recover Plaintiff’s unlawfully transferred funds.” (Id. ¶ 28). TD Bank told Plaintiff that Plaintiff “had five days to request a reversal to recover the money, which of course Plaintiff acted upon immediately.” (Id. ¶ 29). JP Morgan Chase and Bank of America “promptly

recover[ed] most of the money unlawfully transferred to their banks, returning all or substantially all of Plaintiff’s money to its TD Bank accounts.” (Id. ¶ 30). Plaintiff alleges that “TD Bank made several requests . . . on Truist to return the funds, though Truist refused to return the money that it unlawfully received.” (Id. ¶ 31). Finally, “[i]n January 2024[,] Plaintiff received a ‘phantom’ return deposit of $10,000.00 into its TD Bank account with no indication of where it came from,” which TD Bank eventually revealed had come from Truist. (Id. ¶ 32). III. STANDARD OF REVIEW To survive a motion to dismiss under Rule 12(b)(6) for failure to state a claim, “a complaint must provide ‘enough facts to state a claim to relief that is plausible on its face.’” Mayor & City Council of Balt. v. Citigroup, Inc., 709 F.3d 129, 135 (2d Cir. 2013) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). Mere “labels and conclusions” are

insufficient; rather, a plaintiff must provide factual allegations sufficient “to raise a right to relief above the speculative level.” Twombly, 550 U.S. at 555 (citation omitted). The Court must “accept all factual allegations in the complaint as true and draw all reasonable inferences in favor of the plaintiff.” E.E.O.C. v. Port Auth., 768 F.3d 247, 253 (2d Cir. 2014) (citing ATSI Commc’ns, Inc. v. Shaar Fund, Ltd., 493 F.3d 87, 98 (2d Cir. 2007)). Additionally, “the tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). IV. DISCUSSION A.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Ma v. Merrill Lynch, Pierce, Fenner & Smith, Inc.
597 F.3d 84 (Second Circuit, 2010)
Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Wilson v. Northwestern Mutual Insurance
625 F.3d 54 (Second Circuit, 2010)
Faber v. Metropolitan Life Insurance
648 F.3d 98 (Second Circuit, 2011)
ATSI Communications, Inc. v. Shaar Fund, Ltd.
493 F.3d 87 (Second Circuit, 2007)
MaGee v. Paul Revere Life Insurance
954 F. Supp. 582 (E.D. New York, 1997)
Tinlee Enterprises, Inc. v. Aetna Casualty & Surety Co.
834 F. Supp. 605 (E.D. New York, 1993)
Oswego Laborers' Local 214 Pension Fund v. Marine Midland Bank, N. A.
647 N.E.2d 741 (New York Court of Appeals, 1995)
Newbro v. Freed
409 F. Supp. 2d 386 (S.D. New York, 2006)
Banco del Austro, S.A. v. Wells Fargo Bank, N.A.
215 F. Supp. 3d 302 (S.D. New York, 2016)
Kommer v. Bayer Consumer Health
252 F. Supp. 3d 304 (S.D. New York, 2017)
Violet Realty, Inc. v. Affiliated FM Insurance Co.
267 F. Supp. 3d 384 (W.D. New York, 2017)
Silverman v. Household Finance Realty Corp.
979 F. Supp. 2d 313 (E.D. New York, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
Forrence Orchards, Inc. v. TD Bank, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forrence-orchards-inc-v-td-bank-nynd-2025.