Chatsky and Associates v. Superior Court

Frandzel Robins Bloom & Csato and Thomas M. Robins, III, Los Angeles, for Real Party in Interest.

McINTYRE, J.

In this case we conclude that the one-year limitations period of Code of Civil Procedure section 340, subdivision (c) (§ 340(c)), rather than the three-year limitations period of California Uniform Commercial Code section 4111, applies to claims by depositors against their bank for payment of forged checks written on the depositors' accounts. (All references to the "Commercial Code" refer to the California Uniform Commercial Code.)

Chatzky and Associates (Chatzky) and nine other related companies (together plaintiffs), opened checking accounts at Bank of America (the Bank). On March 19, 2001, plaintiffs notified the Bank that some checks written on the accounts had been forged and Chatzky subsequently terminated the alleged forger, who was its bookkeeper and office manager. On March 19, 2002, plaintiffs sued the Bank, alleging causes of action for conversion (Com.Code, § 3420), breach of contract, violation of Commercial Code section 4103 and unfair business practices. The trial court subsequently granted the Bank's motion for summary adjudication, concluding that…