Thomas Calvey v. Stifel, Nicolaus & Company, Inc.

Summary

Under Ohio's Uniform Power of Attorney Act, a financial institution may rely on a facially valid, notarized power of attorney without investigating the agent's actions, even if the agent misappropriates funds. The Sixth Circuit affirmed summary judgment for Stifel, holding that Stifel had no duty to verify the POA beyond its standard review process or to seek the principal's approval before each withdrawal. Thomas Calvey's claims for negligence, breach of fiduciary duty, and conversion failed because Stifel's reliance on the signed, witnessed, and notarized POA was reasonable as a matter of law, and his objections—a non-expert's signature concern, a missing witness certificate page, and alleged procedural lapses—did not create a genuine issue of material fact.

Holdings

1. Under Ohio law, a financial institution is entitled to rely on a facially valid POA that is signed, witnessed, and notarized, and has no duty to investigate the actions of the POA holder. Thomas failed to create a genuine issue of material fact that Stifel breached its duty.
2. Because Stifel lawfully transferred funds pursuant to a valid POA, there was no wrongful act, so the conversion claim fails.
3. Punitive damages are not an independent cause of action in Ohio, so dismissal was proper.

Questions Presented

1. Whether the district court erred in granting summary judgment on the negligence and breach of fiduciary duty claims.
2. Whether the district court erred in granting summary judgment on the conversion claim.
3. Whether the district court erred in dismissing the punitive damages claim.

Disposition

affirmed