Katz v. Belmont National Bank

Arthur Katz, doing business as Montrose Municipal Market, brought this class action suit against defendant, Belmont National Bank. The class action was filed by Katz to recover funds that were deposited in the bank by Controls For Industry, Inc. (CFI). CFI provided payroll services to small businesses like Katz’ by receiving and depositing checks from each business into its account at the bank and then issuing paychecks to each of the business’ employees. CFI charged a fee for this payroll service. Approximately 136 businesses are alleged to have used CFI’s payroll services.

In May of 1982,…