THE HUMANA FOUNDATION, INC. and HUMANA MILITARY HEALTHCARE SERVICES, INC., Plaintiffs, v. CANTELLA & CO., INC., Defendant., 2002 U.S. Dist. LEXIS 10380

Summary

The seller was named as a defendant in an action filed by plaintiff purchasers after the seller obtained certificates of deposit for the purchasers that were forgeries. The seller filed a third party action against the bank for negligent misrepresentation and common law tort indemnity because the bank had verified the authenticity of the first certificate of deposit. The magistrate judge recommended that the bank's motion to dismiss should be allowed. The limitations period governing the negligent misrepresentation claim under either Massachusetts or New York law was three years. The seller had notice that the purchaser was going to demand its money back by the purchaser's letter sent April 3, 1997, and this letter was sufficient notice to apprise the seller of the potential claim for accrual purposes. Thus, the seller's action against the bank, initiated more than three years after the April 1997 demand letter was barred by the applicable statute of limitations. The magistrate judge ...