Far West Citrus, Inc. v. Bank of America

Plaintiff appeals from a judgment adverse to it after an order sustaining a demurrer to its second amended complaint. We reverse the judgment.

I

Plaintiff’s first cause of action alleges that it opened a checking account with defendant bank and deposited therein substantial sums of money. The signature card for that account required two signatures and gave an address in Pacoima, California. Plaintiff’s complaint then alleges that the bank permitted withdrawals from that account on the sole signature of plaintiff’s then corporate secretary (Zonker) and sent periodic statements of the account to an address in Camarillo. The pleading also alleges that the withdrawals were, to the bank’s knowledge, deposited in Zonker’s personal account with the bank and used by him for his own purpose.

The trial court, in sustaining a demurrer to that count, relied on section 4406 of the California Uniform Commercial Code, and respondent here relies on that same section. That section provides as follows:

Admittedly, the original complaint in this action was not filed within the one-year period provided for in subdivision (4) of that section. However, we conclude that section 4406 is not…