Bank of America N.T.S.A. v. Sanati

Facts

In 1963, Hassan and Fatanae Sanati were married in Tehran, Iran, and lived there until Mrs. Sanati moved with the couple’s children to Los Angeles in 1983. In 1987, Mr. Sanati, after spending the past few years living half in Iran and half in America, moved back to Iran permanently. When Mr. Sanati left for Iran, he arranged for payment to be made to Mrs. Sanati back in Los Angeles using the interest from his solely held account with Bank of America in London. The amount of the interest payment was between $2,000 and $3,000 each month and was to be wired to the couple’s jointly held account at Bank of America in Tarzana, California. In April 1990, Bank of America mistakenly sent Mr. Sanati’s entire balance to Mrs. Sanati. She proceeded to disburse the money between several accounts, including those of her adult children. Bank of America sued Mr. Sanati, Mrs. Sanati, and her children to recover on the misappropriated funds. Eventually, Mr. Sanati’s bank account was re-credited with the amount of the principal transferred without his authority and he was dismissed as a defendant in the action.