Helpful Hints
  • (1) You can search the entire content of Dean’s by phrase or by individual words. Just type your keywords into the search box and then pull down the search icon on the right and choose the option you need: search by word or by phrase or reset the content.
  • (2) Double click on a word in the content of a definition, and if the word is listed as a keyword in Dean’s, it will look that word up.
  • (3) You can use the search function to help jump the scrolling function. Simply type the first 2-3 letters into the search box then hit enter on your keyboard and the scroll will go to those Keywords that begin with those letters and allow you to scroll from there.

The Michigan Court of Appeals first recognized a common law duty of inquiry in Allis Chalmers Leasing Servs. Corp. v. Byron Ctr. State Bank, 129 Mich. App. 602, 341 N.W.2d 837 (Mich. Ct. App. 1983). In Allis Chalmers, the plaintiff wrote a check payable to the defendant, Byron Center State Bank, as part of a purchase and leaseback agreement that the plaintiff had entered into with Gary Deneen, a customer of the defendant. Id. at 839. Deneen presented the check to the defendant as part of a fraudulent scheme Deneen devised to defraud the plaintiff. Id. The defendant's employee distributed the proceeds according to Deneen's instructions without making any inquiry into how the funds should be used. Id.


Seeking to recover its losses, the plaintiff brought a negligence action against the defendant bank for the amount of the check. The plaintiff alleged that the defendant bank was negligent in disbursing the check to Deneen without first inquiring into how the funds should be disbursed. Id. On appeal, the Michigan Court of Appeals affirmed the trial court's grant of summary judgment in favor of the plaintiff, citing the general rule that '[w]here a check is ...

Register or login to access full content



Professors
Professionals
Students