NationsBank, N.A. v. Dilling

We must determine whether a bank is vicariously liable for the fraudulent acts of a bank teller whose participation in an investment scheme caused damages to a third party. We also must decide whether the bank is directly liable to the third party for negligently employing the teller, who improperly issued cashier’s checks that the bank hon ored. We hold that vicarious liability does not attach to an employer in the absence of evidence that its employee was acting within the scope of her actual or apparent authority, and that a bank owes no duty to protect a third party from making investment…