American Airlines Employees Federal Credit Union v. Martin (1999)

In American Airlines Employees Federal Credit Union v. Martin, 991 S.W.2d 887 (Tex. App.--Fort Worth 1999, pet. granted), Tim Martin, a holder of a savings account with the American Airlines Employees Federal Credit Union, obtained judgment against the credit union after his girlfriend withdrew a substantial part of his deposited funds, following the credit union's acceptance of her oral application to be added as a party to his account. See Id. at 890. The court in American Airlines upheld the judgment, despite the fact that Martin's claim was not filed within a sixty-day notice provision contained in the deposit agreement between Martin and the credit union, because it held that the provision, which applied only in the case of an unauthorized signature, was inapplicable since the girlfriend's oral application to be placed on the account did not qualify as an unauthorized signature. Id. at 894. The court also found that Martin had not agreed to the shortened notice provision. Id. at 899.