Florida’s Federal Courts Are on the Verge of Getting It Wrong: UCC Article 4A Displaces Common Law Negligence Actions

Article 4A of the Uniform Commercial Code provides the exclusive remedy for unauthorized funds transfers and displaces inconsistent common law claims. Thus, negligence claims that center around whether disputed funds transfers were authorized and how they were conducted should be dismissed as inconsistent with Article 4A. The author of this article analyzes Florida federal court decisions that have created uncertainty and undesired flexibility within the law—precisely what the drafters of Article 4A meant to avoid.