Compass Bank v. Francisco Calleja-Ahedo

An identity thief drained Francisco Calleja-Ahedo's bank account through a series of fraudulent transactions in 2012 and 2013. Calleja sued his bank to recover the stolen funds. The question now is whether Calleja or his bank must suffer the financial consequences of the theft. Section 4.406 of the Business and Commerce Code contains the Texas legislature's answer to that question. "If a bank sends or makes available a statement of account ... the customer must exercise reasonable promptness in examining the statement ... to determine whether any payment was not authorized" and "must promptly…