Hanover Insurance v. M & T Bank

MEMORANDUM OPINION

T.S. ELLIS, III, District Judge.

At issue in this diversity action is whether plaintiff surety’s breach of contract claim against defendant bank is barred by Va.Code § 8.4-406(f) because the surety failed to notify the bank of improper withdrawals from a guardianship account within one year. For the reasons that follow, a surety with limited signatory authority over a guardianship account is not a “customer” within the meaning of the Code, and hence the Code’s statutory notice provision does not apply. Accordingly, the motion to dismiss must be denied.

I. 1

Plaintiff, Hanover…