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JEFFERSON STATE BANK v. LENK

No. 09-0269.

323 S.W.3d 146 (2010)

JEFFERSON STATE BANK, Petitioner, v. Christa C. LENK, Administratrix of the Estate of Mickey Carl Marcus, Respondent.

Supreme Court of Texas.

Decided August 27, 2010.

Attorney(s) appearing for the Case

Ellen B. Mitchell , Cox Smith Matthews , David B. West , Cox & Smith Incorporated, James Michael Oliveros , Ross Molina Oliveros, P.C., San Antonio, TX, for Petitioner.

S. Mark Murray , S. Mark Murray, Inc., Don Krause , Bayne Snell & Krause, San Antonio, TX, for Respondent.

Harry Shannon Phillips Jr. , Independent Bankers Assoc. of TX, Austin, TX, for Amicus Curiae-Independent Bankers.

B. Scott Daugherty , Texas Bankers Association, Austin, TX, for Amicus Curiae-TX Bankers Assoc.

Justice GUZMAN delivered the opinion of the Court.

Section 4.406 of the Texas Business and Commerce Code requires customers to timely notify their banks of unauthorized transactions. Today, we decide when that duty arises for estate administrators who are appointed after the unauthorized transactions occur on the estate's account. The unauthorized transactions in this case took place approximately two years before the appointment of the administrator, who sued the...

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