Spacemakers of America, Inc., hired Jenny Tripplet as its bookkeeper. Pacemakers did not inquire about any...

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Operations Management

Spacemakers of America, Inc., hired Jenny Tripplet as itsbookkeeper. Pacemakers did not inquire about any prior criminalrecord or conduct a criminal background check of Triplett. If ithad taken those steps, it would have discovered that Triplett wason probation for 13 counts of forgery and had been convicted oftheft by deception. All convictions were the result of Triplettforging checks of previous employers.

Spacemakers delegated to Triplett sole responsibility formaintaining the company’s checkbook, reconciling the checkbook withmonthly bank statements, and preparing financial reports. Triplettalso handled the company’s accounts payable and regularly presentedchecks do Dennis Rose, the president of Spacemakers, so he couldsign them.

Just weeks after starting her job at Spacemakers, Triplettforged Rose’s signature on a check for $3,000 made payable to herhusband’s company, Triple M Entertainment Group, which was not avendor for Spacemakers. By the end of the first full month ofemployment, Triplett forged 50 more checks totaling approximately$475,000. All checks were drawn against Spacemaker’s bank accountat SunTrust Bank. No one except Triplet reviewed the company’s bankstatements. Subsequently, a SunTrust employee visuasilly inspecteda $30,670 check She became suspicious of the signature and calledRose. The SunTrust employee faxed a copy of the check to Rose,which was made payable to Triple M. Rose knew that Triple M was notone of the company’s vendors, and a Spacamekrs employee remindedRose that Triplett’s husband owned Triple M. Rose immediatelycalled the police and Triplett was arrested.

Spacemakers sent a letter to SunTrust Bank, demanding that thebank credit $523,106 to its account for the forged checks. The bankrefused, contending that Spacemaker’s failure to provide the bankwith timely notice of the forgeries barred Spacemaker’s claim.Spacemakers sued SunTrust for negligence and unauthorized paymentof forged items. The trial court granted SunTrust’s motion forsummary judgment. Pacemakers appealed.

Using IRAC, how should this case have been decided and why?Please, do not copy from google. I need original answer.

Answer & Explanation Solved by verified expert
4.4 Ratings (651 Votes)
The issue in the case of Spacemakers versus SunTrust Bank is in whether SunTrust Bank owed an obligation to compensate pacemakers for the payments made against the forged checks arising out of neglect of its duty of care leading to a tortuous claim The four major elements of existence of a tort are namely duty breach of Duty position and injury with a tort being identifiable as an intentional tort tort arising due to negligence or a strict liability tort An intentional tort results due to purposeful acts of an individual which cause subsequent injury or damage to another Tort arising due to negligence result mostly from a person not applying due care to ensure the action would not cause injury to another and does not provide the required duty of care owed to another person Strict liability torts only require proof of    See Answer
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