Richards v. Seattle Metropolitan Credit Union

Michelle M. Richards (Michelle) sued Seattle Federal Credit Union1 (the credit union) for allowing her father (Richards) to deposit a check issued for her benefit into his personal account. Because the credit union had inquiry notice that Richards was breaching his fiduciary duty, the credit union should not have assisted him by depositing the funds in his personal account. But because the credit union’s actions did not cause Michelle’s loss, except for the $100 Richards took when he cashed the check, the credit union is not liable for Richards’ subsequent misappropriation of the remainder of…