Mid-Cal National Bank, a National Banking Association, and v. Federal Reserve Bank of San Francisco, Bank of Stockton, And

TURRENTINE, District Judge:

Bank of Stockton (hereinafter “Stockton”) appeals from a summary judgment entered against it. This case presents the question whether one bank owes a legal duty to another bank to discover a check kiting scheme that results in a loss to the second bank. The court below apparently determined that no such duty was owed by appellee Mid-Cal National Bank (hereinafter “Mid-Cal”) to Stockton. We affirm.

The essential facts are as follows. Mid-Cal and Stockton were used by certain individuals in their perpetration of a check kiting scheme. In a kite, accounts are maintained…