D.C. Avoids Arbitration in $117 Million Lawsuit Against Bank of America
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The District of Columbia can move forward with a $117 million lawsuit against Bank of America N.A. in connection with an embezzlement scheme carried out by a former city employee, the D.C. Court of Appeals ruled last week.
Harriette Walters, a former manager in the city’s tax office, is serving more than 17 years in jail after pleading guilty to issuing $48 million in fraudulent property tax refunds. The District sued Bank of America in 2008, accusing it of failing to take steps to protect the city’s money.
Bank of America argued its contract with the city required the dispute to go to arbitration in North Carolina. A trial judge disagreed, and on Nov. 27, the appeals court found the city wasn’t bound by any arbitration or forum-selection clauses. The court released the opinion yesterday.
Read original articleTags: Bank of America, Court of Appeals, D.C. Avoids Arbitration
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