Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Star Financial Services, Inc. v. Cardtronics USA, Inc.

United States Court of Appeals, Fifth Circuit

February 2, 2018

STAR FINANCIAL SERVICES, INCORPORATED, doing business as Advanced ATM Services, Plaintiff - Appellant
v.
CARDTRONICS USA, INCORPORATED, Defendant-Appellee

         Appeal from the United States District Court for the Eastern District of Louisiana

          Before HIGGINBOTHAM, JONES, and GRAVES, Circuit Judges.

          PER CURIAM

         Plaintiff Star Financial Services, Inc., an ATM operator, having executed a contract with Defendant Cardtronics, USA, Inc. in which Cardtronics agreed to process the electronic transfer of funds associated with operating ATMs, initiated this breach-of-contract action alleging that Cardtronics failed to correct certain account information-an error that resulted in approximately $250, 000 of misdirected funds. The district court granted summary judgment in favor of Cardtronics, finding that Star Financial failed to establish that Cardtronics had an obligation under the contract to correct the specified account information. We reverse and remand.

          I.

         Star Financial operates a large network of ATMs, ("Terminals"), in Maryland, the District of Columbia, and Virginia. In February 2012, Star Financial executed an agreement, (the "Contract"), with ATM Deployer Services, LLC-succeeded by Columbus Data Services and subsequently Cardtronics by merger-to process the electronic transfer of funds associated with operating ATMs.

         To commence, a Star Financial ATM must be "set up" in Cardtronics's system. This requires Star Financial to provide Cardtronics with a "Terminal Set-up Form, " through which Star Financial, among other things, designates a bank account into which Cardtronics is to credit amounts withdrawn from a particular terminal. When a customer withdraws cash from a Star Financial ATM, Cardtronics debits the amount withdrawn from the customer's bank account and then credits that amount back to the account that Star Financial designated on the Terminal Set-up Form. Star Financial designates its "Settlement Account" as the bank account for Star Financial-funded ATMs.

         The Contract captures this process in sections 2.1, 4.1, and 4.2. Section 2.1 sets forth the services that Cardtronics provides to Star Financial.[1] Section 4.1 explains Star Financial's obligation to provide Cardtronics with a Terminal Set-up Form as follows:

[Star Financial] shall provide [Cardtronics] with a fully and accurately completed . . . Terminal Set-up Form . . . for each Terminal subject to this Agreement prior to the date on which Services are to commence . . . [Star Financial] represents and warrants that all information in each . . . Terminal Set-up Form . . . shall be correct and complete. [Star Financial] must immediately notify [Cardtronics] in writing of any change in the information set forth in a Terminal Set-up Form . . . .

         And, section 4.2 places the "responsibility" on Star Financial to "verify that all information contained in a Terminal Set-up Form . . . is correct and complete."

         On August 19, 2015, Star Financial submitted Terminal Set-up Forms for three ATMs-Terminals A282694, A282696, and A282697-to be activated on November 1, 2015. When filling out the Terminal Set-up Forms, Star Financial mistakenly designated an account for a merchant-owned ATM belonging to third-party DC Stars, LLC, rather than Star Financial's Settlement Account. The next day, Star Financial notified Cardtronics of its mistake and provided updated Terminal Set-up Forms with the correct account number for all three terminals. Cardtronics confirmed receipt of the updated Terminal Set-up Forms but only corrected the account information for Terminal A282697. Consequently, Cardtronics credited amounts withdrawn from Terminals A282694 and A282696 to DC Stars's account, rather than to Star Financial's Settlement Account.

         On March 17, 2016, Star Financial noticed an abnormal shortage of funds in its Settlement Account. Using Cardtronics's web portal, Star Financial learned that Cardtronics's failure to correct the account information for Terminals A282694 and A282696 caused that shortage and misdirected $250, 900 to DC Stars's account. Within twenty-four hours of this discovery, Star Financial notified Cardtronics of the error. Star Financial recovered $95, 163.69 from DC Stars but has not recovered the remaining $155, 736.32.

         Star Financial sued to recover the remaining funds from Cardtronics, alleging, among other things, that Cardtronics breached its obligations under the Contract "when it failed to correct the account information of Terminals A282694 and A282696, and when it failed to reimburse Star Financial for the resulting misdirected funds." Shortly thereafter, the ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.