Calisch Associates, Inc. v. Manufacturers Hanover Trust Co

In Calisch Associates, Inc. v. Manufacturers Hanover Trust Co., 151 A.D.2d 446 (1st Dept. 1989) a faithless employee engaged in an embezzlement scheme that went undetected by her employer. According to the Court, the plaintiff alleged that the bank "acted in bad faith by failing to perceive that a fraud was in progress either because one of its employees was conspiring with kounick or by not adequately training and supervising its employees regarding proper bank procedures." Based on that description, the Court dismissed the negligence claim, holding; that "At most, these allegations amount to a claim that defendant bank was negligent in not being sufficiently vigilant and/or not providing satisfactory instruction to its staff."