Tort and Bad Boy
MANDATES
Piec vs. Caisse d’economie polonaise (p. 59) (MIDTERM 2)
Grandma = Stephania Wojcicka
Bad Boy = nephew Tadeusz Wojcicki
Niece (Margaret Wojcicka) is executor of will
|Facts |Three mandates: |
| |Gma goes on extended trip, gives power of attorney for banking matters to Bad Boy |
| |Niece has mandate as executor of the will (mandate only kicks in when Gma dies) |
| |Bank has mandate for Gma’s finances |
| |Grandma’s bank account summary: $5 membership, $1k term deposit, $26k term deposit (can’t take out until |
| |26-Oct-92 or wil receive no interest) |
| |Bank didn’t k6now Gma was dead when Bad Boy removed funds |
|Question |Was bank guilty of not [2138] exercising prudence and diligence for its [2130] mandate? |
| |Does the valid mandate authorize the bank to give the term deposits (no) |
| |What effect should be given to the letter of july 1st (none) |
| |Did the bank owe obligation to grandma, and not rely on the letter (yes, 2138) |
|Ratio |1. Argument: Bank is a special type of agent, v. strong fiduciary duties; if they’ve been defrauded they are 100%|
| |liable. Answer: Bank should have been more [2138] prudent and diligent; it wasn’t prudent cash out the account, |
| |and the bank wasn’t
Piec vs. Caisse d’economie polonaise (p. 59) (MIDTERM 2)
Grandma = Stephania Wojcicka
Bad Boy = nephew Tadeusz Wojcicki
Niece (Margaret Wojcicka) is executor of will
|Facts |Three mandates: |
| |Gma goes on extended trip, gives power of attorney for banking matters to Bad Boy |
| |Niece has mandate as executor of the will (mandate only kicks in when Gma dies) |
| |Bank has mandate for Gma’s finances |
| |Grandma’s bank account summary: $5 membership, $1k term deposit, $26k term deposit (can’t take out until |
| |26-Oct-92 or wil receive no interest) |
| |Bank didn’t k6now Gma was dead when Bad Boy removed funds |
|Question |Was bank guilty of not [2138] exercising prudence and diligence for its [2130] mandate? |
| |Does the valid mandate authorize the bank to give the term deposits (no) |
| |What effect should be given to the letter of july 1st (none) |
| |Did the bank owe obligation to grandma, and not rely on the letter (yes, 2138) |
|Ratio |1. Argument: Bank is a special type of agent, v. strong fiduciary duties; if they’ve been defrauded they are 100%|
| |liable. Answer: Bank should have been more [2138] prudent and diligent; it wasn’t prudent cash out the account, |
| |and the bank wasn’t