National Bank v. FCC Equipment Financing, Inc.

I. Introduction.

THE National Bank (TNB) wired money to FCC Equipment Financing, Inc. *18(FCC), which held a lien on five trucks. TNB anticipated that these funds — together with additional funds from TNB’s customer — would enable FCC’s lien to be paid off and TNB’s customer to acquire the trucks with TNB becoming the new secured lender. As it turned out, the customer did not have enough money to pay off the balance of FCC’s lien. TNB accordingly seeks recovery of the wired funds from FCC under principles of unjust enrichment, mistake, and negligent nondisclosure. Because we believe TNB does not…