The Federal Court of Appeals ruled in favor of BancorpSouth in Choice Escrow and Land Title LLC v. BancorpSouth Bank. As the losing party, Choice may now be responsible for paying the bank's legal fees and expenses associated with the defense - a precedent that could have a big impact on similar cases down the road.
Banks and consumers alike can learn from this case. This article discusses ways to protect yourself if you ever find themselves in a similar situation. For banks, keeping a record of instances when a customer declines to use security procedures could be the difference between winning and losing a lawsuit. For consumers, knowing what counts as "commercially reasonable" security procedures is also vital in order to have a valid case.