By: Derek Hawkins//December 19, 2017//
WI Court of Appeals – District I
Case Name: Koss Corporation v. Park Bank, et al.
Case No.: 2016AP636
Officials: Stark, P.J., Hruz and Seidl, JJ.
Focus: Issue of Material Fact
Over the course of about twelve years, Sujata Sachdeva embezzled approximately $34 million from her employer, Koss Corporation. After the embezzlement was discovered and Sachdeva was convicted of multiple criminal offenses, Koss sued Park Bank, the financial institution through which Sachdeva obtained a large portion of the embezzled funds. Koss’s complaint alleged Park Bank was liable for violating Wisconsin’s version of the Uniform Fiduciaries Act (UFA). See WIS. STAT. § 112.01 (2015- 16). Park Bank moved for summary judgment, asserting it could not be held liable under the UFA because there was no evidence it acted in bad faith with respect to Sachdeva’s transactions. The circuit court agreed and entered a judgment dismissing Koss’s claim against Park Bank.
On appeal, Koss argues the circuit court erred in dismissing the action on summary judgment because genuine issues of material fact exist regarding whether Park Bank acted in bad faith, as that term is used in the UFA. We disagree and conclude the undisputed material facts do not demonstrate that Park Bank acted in bad faith. We therefore affirm the judgment dismissing Koss’s claim.
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