Breach of Contract and Negligence Claim

WI Court of Appeals – District IV

Case Name: Rapid Die and Molding Co., v. Royal Bancshares Inc.,

Case No.: 2020AP1552

Officials: Fitzpatrick, Graham, and Nashold, JJ.

Focus: Breach of Contract and Negligence Claim

Rapid Die and Molding Co. appeals an order of the Grant County Circuit Court dismissing its claims against Royal Bancshares, Inc. One of RDM’s employees stole funds from the business checking account that RDM maintained with Royal Bank. RDM’s complaint alleged that Royal Bank is liable for the stolen funds because: (1) Royal Bank breached the parties’ contract regarding the terms of the checking account; and (2) Royal Bank was negligent in that Royal Bank “breached its duty to act with reasonable care to protect RDM’s funds” in that account.

In response, Royal Bank filed in the circuit court motions to dismiss RDM’s causes of action for failure to state a claim upon which relief can be granted. Royal Bank argued that the complaint did not allege facts to plausibly suggest that Royal Bank breached its contract with RDM and that RDM’s negligence claim is barred by Wisconsin’s version of the Uniform Fiduciaries Act. The circuit court granted Royal Bank’s motion on each claim and dismissed RDM’s complaint without prejudice to RDM filing an amended complaint on RDM’s second cause of action. RDM appeals. We affirm the circuit court’s order

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Derek A Hawkins is Corporate Counsel, at Salesforce.