Percy King and George Russell v. Crossland Savings Bank and American Express Company

111 F.3d 251, 1997 U.S. App. LEXIS 7117, 1997 WL 175070
CourtCourt of Appeals for the Second Circuit
DecidedApril 7, 1997
Docket648, Docket 96-7468
StatusPublished
Cited by150 cases

This text of 111 F.3d 251 (Percy King and George Russell v. Crossland Savings Bank and American Express Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Percy King and George Russell v. Crossland Savings Bank and American Express Company, 111 F.3d 251, 1997 U.S. App. LEXIS 7117, 1997 WL 175070 (2d Cir. 1997).

Opinion

KELLEHER, District Judge:

Plaintiffs, Percy King and George Russell (collectively referred to as “plaintiffs”), appeal from the district court’s issuance of an order granting defendants’, Crossland Savings Bank and American Express Company (“Crossland” and “American Express,” respectively, and collectively referred to as “defendants”), motions for summary judgment. Plaintiffs are two individuals, one of whom attempted to open an account at Crossland. When presented with nine third-party (i.e., not made out to either of the plaintiffs) American Express Travelers’ Cheques, Crossland telephoned American Express, which erroneously reported the checks as lost or stolen. Crossland then called the New York Police Department (“NYPD”), officers of which came to the bank and arrested King and Russell. The two men were not released until fourteen hours later, after American Express finally was able to communicate to the NYPD that the information provided was in error.

Before the district court, King and Russell claimed that American Express and Cross-land should be liable for false imprisonment. Because neither American Express nor Crossland procured or instigated the arrest, however, the district court found for the defendants. Kong and Russell next asserted a claim for negligent misrepresentation against American Express. The district court again found for American Express because King and Russell, as plaintiffs, had not acted in reliance on the representations of American Express. Lastly, King and Russell had alleged that Crossland should be liable for negligence. The district court ruled in favor of Crossland because undisputed facts established that, as a matter of law, Crossland had not acted unreasonably. For the reasons that follow, we affirm the district court’s grant of summary judgment.

I. BACKGROUND

A. Factual History

On December 6, 1985, Plaintiffs-Appellants Percy King (“King”) and George Russell (“Russell”) visited Crossland, with the purpose of having King open a Certificate of Deposit in the amount of one hundred thousand dollars ($100,000). Russell, who apparently frequented Crossland, referred King to a teller, then temporarily left the bank. While attempting to open the account, King produced seventy-seven negotiable instruments — nine of which were American Express Travelers’ Cheques having a total value of five hundred seventy dollars ($570).

As Crossland reports to be customary procedure when dealing with third-party cheeks, the teller, or another employee at the bank, contacted American Express to confirm the status of the checks (i.e., whether they had been reported lost or stolen). American Express advised Crossland that the travelers’ checks had been reported lost or stolen. A *254 Crossland employee then contacted the NYPD. The police arrived at the scene and arrested both King and Russell, the latter having returned to the bank shortly after the police had arrived. King and Russell were then detained at the 6Srd Police Precinct of the NYPD.

Later that day, American Express became aware that erroneous information had been provided to Crossland and that the checks, in fact, had not been reported lost or stolen. At that time, American Express dispatched an agent to effect the release of King and Russell from detention by the NYPD. The agent went to the 63rd Police Precinct but was told that King and Russell could not be released until the booking process had been completed. The agent eventually was able to persuade the police to drop the criminal charges against King and Russell, who were consequently released. The NYPD had taken King and Russell into custody at around 11:00 a.m.; they were released from the 63rd Police Precinct fourteen hours later, at around 1:00 a.m.

B. The District Court Decision

When the district court was presented with the defendants’ motions for summary judgment, two causes of action against each defendant remained from those originally included in a complaint removed from the Supreme Court of New York, County of New York, on April 27, 1992. As against each defendant, King and Russell alleged both false imprisonment and negligence. In ruling on the summary judgment motion, the district court, in line with New York state law and based on the recommendation of a magistrate judge, construed plaintiffs’ general negligence claim against American Express as one of negligent misrepresentation. 1 Notably, though King and Russell did contest the magistrate court’s characterization of the claim as one of negligent misrepresentation when arguing before the district court, King and Russell do not expressly argue on appeal that the district court erred in similarly so doing. 2 Having so construed the plaintiffs’ case, the district court then grant *255 ed the defendants’ motions for summary judgment as to each of the false imprisonment, negligent misrepresentation, and negligence claims.

First, as to false imprisonment, New York courts require a plaintiff to show: (1) that the defendant intended to confine the plaintiff, (2) that the plaintiff was aware of the confinement, (3) that the plaintiff did not consent to the confinement, and (4) that the confinement was not otherwise privileged. Broughton v. State, 37 N.Y.2d 451, 456-57, 373 N.Y.S.2d 87, 93, 335 N.E.2d 310, 314, cert. denied, 423 U.S. 929, 96 S.Ct. 277, 46 L.Ed.2d 257 (1975). The key element of the test as it pertains to both defendant American Express and defendant Crossland is the intent requirement. To prove intent, a plain tiff must show that the defendant either: (a) confined or intended to confine the plaintiff or (b) affirmatively procured or instigated the plaintiffs’ arrest. Carrington v. City of New York, 201 A.D.2d 525, 526-27, 607 N.Y.S.2d 721, 722 (2d Dep’t 1994); Williams, 90 A.D.2d at 862, 456 N.Y.S.2d at 493. As against American Express, the district court ruled that far from intending to confine King and Russell or affirmatively instigating their arrest, American Express did nothing more than pass on information to Crossland. Car-rington, 201 A.D.2d at 526-27, 607 N.Y.S.2d at 722 (noting that a defendant must confine, attempt to confine, or, in the context of police arrests, attempt to instigate the arrest). Similarly, with regard to defendant Cross-land, because Crossland identified but did not direct the arrest of King and Russell, the district court again found that the “intent” requirement of false imprisonment could not be met.

Second, as to the negligent misrepresentation claim against American Express, under New York law a plaintiff must first establish that the defendant had a duty to give correct information. International Products Co. v. Erie R. Co., 244 N.Y. 331, 338, 155 N.E. 662, 664, cert. denied, 275 U.S. 527, 48 S.Ct. 20, 72 L.Ed. 408 (1927). A plaintiff must then show that the defendant knew: (1) that the information was desired by plaintiff for a serious purpose, (2) that the plaintiff

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Bluebook (online)
111 F.3d 251, 1997 U.S. App. LEXIS 7117, 1997 WL 175070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/percy-king-and-george-russell-v-crossland-savings-bank-and-american-ca2-1997.