Kaplan v. State Bar of California

Appellant Los Angeles National Bank filed an action against respondent Bank of Canton of California seeking $2,257,965 in compensatory damages, plus punitive damages, for respondents alleged failure either to pay the face amount of, or notify appellant it would not honor, 28 checks prior to the "midnight deadline" established by the California Uniform Commercial Code, and for conversion arising from respondents alleged wrongful failure to pay appellant the face amount of the checks. The superior court denied a motion brought by appellant for summary judgment, instead granting a motion brought by respondent for summary judgment on the basis that the evidence was undisputed that appellants loss resulted from the negligence of its employees rather than from respondents failure to return the checks prior to the statutory deadline. The superior court denied respondents claim that, as the prevailing party, it was entitled to attorneys fees pursuant to Civil Code section 1717.