American Airlines Employees Federal Credit Union v. Martin (2000)

In American Airlines Employees Federal Credit Union v. Martin, 29 S.W.3d 86 (Tex. 2000), an accountholder did not notify his credit union of unauthorized transactions made by an unknown third person on his account within 60 days of his receipt of the account statement where the transactions were reflected, as required by his deposit agreement. The American Airlines court held that Tex. Civ. Prac. & Rem. Code section 16.071(a) did not apply because the notice was not of a claim for damages, but of unauthorized transactions. The contractual notice requirements served the purpose of preventing further unauthorized transactions from occurring and allowing the credit union to attempt to recover the funds. See id.