Nathan’s Homes, Inc. v. Fifth Third Bank, N.A.

CourtDistrict Court, M.D. Florida
DecidedMay 26, 2026
Docket2:25-cv-00987
StatusUnknown

This text of Nathan’s Homes, Inc. v. Fifth Third Bank, N.A. (Nathan’s Homes, Inc. v. Fifth Third Bank, N.A.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nathan’s Homes, Inc. v. Fifth Third Bank, N.A., (M.D. Fla. 2026).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA FORT MYERS DIVISION

NATHAN’S HOMES, INC.,

Plaintiff, Case No. 2:25-cv-00987-KCD-DNF

v.

FIFTH THIRD BANK, N.A.,

Defendant. /

ORDER Before the Court is Defendant Fifth Third Bank, N.A.’s motion to dismiss. (Doc. 22.)1 Plaintiff Nathan’s Homes, Inc. has responded in opposition (Doc. 23), making this matter ripe. For the reasons below, Fifth Third Bank’s motion is GRANTED IN PART AND DENIED IN PART. I. Background2 This case arises out of a fraudulent wire transfer. Plaintiff is a Florida- based business that opened a bank account at Fifth Third Bank. (Doc. 1 ¶ 6.) According to the complaint, the parties met several times to discuss improving the account’s security, and Plaintiff was assured that its funds were secure. (Id. ¶¶ 8-10.) Still, Plaintiff logged into the account one day to discover that

1 Unless otherwise indicated, all internal quotation marks, citations, case history, and alterations have been omitted in this and later citations.

2 “At the motion to dismiss stage, all well-pleaded facts are accepted as true, and the reasonable inferences therefrom are construed in the light most favorable to the plaintiff.” Bryant v. Avado Brands, Inc., 187 F.3d 1271, 1273 n.1 (11th Cir. 1999). $854,864.00 had been stolen. Apparently, the money was wired to two different LLCs that Plaintiff did not recognize.

Plaintiff promptly informed Fifth Third Bank of the wire, but the bank did not resolve the issue satisfactorily. Due to the missing funds, the account incurred several fees, checks were returned or canceled for insufficient funds, the business lost a key client, employees were laid off, and overall business

performance declined. (Id. ¶ 24.) So, Plaintiff now sues. It alleges eleven counts against Fifth Third Bank: violation of the Electronic Fund Transfer Act ,15 U.S.C. § 1693 (Count I), breach of contract (Count II), negligence (Count III), gross negligence (Count

IV), negligent misrepresentation (Count V), fraudulent misrepresentation (Count VI), intentional infliction of emotional distress (Count VII), violation of the Florida Deceptive and Unfair Trade Practices Act, Fla. Stat. § 501.204 (Count VIII), violation of Florida’s Civil Remedies for Criminal Practices Act,

Fla. Stat. § 772.103 (Count IX), breach of fiduciary duty (Count X), and violation of the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962(c) (Count XI). (Doc. 1.) Fifth Third Bank moves to dismiss each claim. II. Legal Standard

To survive a motion to dismiss, “a complaint must contain sufficient facts, accepted as true, to state a facially plausible claim for relief.” Galette v. Goodell, No. 23-10896, 2023 WL 7391697, at *3 (11th Cir. Nov. 8, 2023). “A claim is facially plausible if it pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct

alleged.” Id. When reviewing a motion to dismiss, courts must accept all factual allegations in the complaint as true and view the facts in the light most favorable to the plaintiff. Erickson v. Pardus, 551 U.S. 89, 93–94 (2007). “[A]

plaintiff’s obligation to provide the grounds of his entitlement to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). “[C]onclusory allegations, unwarranted factual deductions or legal

conclusions masquerading as facts will not prevent dismissal.” Davila v. Delta Air Lines, Inc., 326 F.3d 1183, 1185 (11th Cir. 2003). III. Discussion To begin, the Court notes that it sits in diversity jurisdiction over a case

involving several state-law claims. While federal law governs Plaintiff’s federal claims and procedural matters, further analysis of the applicable choice-of-law principles is necessary before addressing the merits of the contract, tort, and state statute claims.

When a court is sitting in diversity, it applies the choice-of-law rules of the forum state—here, Florida. McMahan v. Toto, 256 F.3d 1120, 1131 (11th Cir. 2001). Under Florida law, parties get to choose the law that governs their contractual relationship, so long as their choice isn’t unreasonable or offensive to public policy. Arndt v. Twenty-One Eighty-five, LLC, 448 F. Supp. 3d 1310,

1315 (S.D. Fla. 2020). Here, the parties made a choice. When Plaintiff opened its account, it signed an agreement stating that Ohio law applies to “any claims or disputes relating to or arising out of this Agreement or the Services.” (Doc. 22-1 at 11.) Fifth Third Bank seeks to enforce this provision. So the question

that must be answered is whether Plaintiff’s state claims “arise out of or relate to” the agreement or the underlying services. If it does, then the Court must apply Ohio law. The choice-of-law provision is undeniably broad—a point Plaintiff does

not even try to dispute. For every one of its eleven claims, Plaintiff relies on the same story: the parties formed an agreement, they discussed account security, and the bank ultimately failed to keep the funds safe. The contract itself exhaustively details who is responsible for which security measures and

how the account must be managed. (Doc. 22-1 at 4-6, 8-9; Doc. 22-2 6-8, 13.) “[W]here the dispute occurs as a fairly direct result of the performance of contractual duties ... then the dispute can fairly be said to arise out of or relate to the contract in question.” Cooper v. Meridian Yachts, Ltd., 575 F.3d 1151,

1162 (11th Cir. 2009). That is exactly what we have here, and Plaintiff does not argue otherwise. (See Doc. 23.) Accordingly, the Court must agree that Ohio law governs Plaintiff’s state-law claims. Count I—Electronic Fund Transfer Act (“EFTA”) EFTA is a federal statute enacted to “provide a basic framework

establishing the rights, liabilities, and responsibilities of participants in electronic fund … transfer[s.]” Corposistemas, C.A. v. Regions Bank, No. 1:23- CV-23540-KMM, 2024 WL 2783124, at *2 (S.D. Fla. Feb. 5, 2024); 15 U.S.C. § 1693. Electronic fund transfers are “any transfer of funds … initiated through

an electronic terminal … so as to … authorize a financial institution to debit or credit an account.” 15 U.S.C. § 1693a(7). The statute’s primary objective is to protect “individual consumer rights.” § 1693. EFTA defines “consumer” as “a natural person.” § 1693a(6).

According to Fifth Third Bank, EFTA does not protect corporate entities like Plaintiff. The Court agrees. See Corposistemas, 2024 WL 2783124, at *3 (“EFTA applies only to consumers and not corporate entities.”). Trying to skirt that obvious problem, Plaintiff pivots. It claims that discovery will eventually

show it used the account for more than just business. (Doc.

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