NONPRECEDENTIAL DISPOSITION
To be cited only in accordance with Fed. R. App. P. 32.1
United States Court of Appeals
For the Seventh Circuit
Chicago, Illinois 60604
Argued January 21, 2016
Decided January 25, 2016
Before
RICHARD A. POSNER, Circuit Judge
FRANK H. EASTERBROOK, Circuit Judge
MICHAEL S. KANNE, Circuit Judge
No. 14-‐‑3342 Appeal from the United
States District Court for the
RAVI KADIYALA, Northern District of Illinois,
Plaintiff-‐‑Appellant,
Eastern Division.
v.
No. 13 C 4533
BANK OF AMERICA, N.A., Joan H. Lefkow, Judge.
Defendant-‐‑Appellee.
Order
After Ravi Kadiyala purchased 49% of the stock of Euro International Mortgage, Inc.
(EIM), the firm opened a new account (Account 9378) at Bank of America. Kadiyala was
an authorized signatory on that account. EIM provided him with credentials (username
and password) that afforded him access to EIM’s other accounts at the Bank. He used
those credentials to transfer $200,000 out of Account 3998, of which he was not a signa-‐‑
tory, into Account 9378. He then instructed the Bank to issue cashier’s checks against
the new balance in Account 9378. When he learned what Kadiyala had done, Mark
Pupke, an authorized signatory on both accounts (and owner of the other 51% of EIM’s
stock), told the Bank to cancel the transfer and restore the funds to Account 3998. The
No. 14-‐‑3342 Page 2
Bank complied. Kadiyala contends in this suit under the diversity jurisdiction that, by
reversing the transfers and cancelling the checks, the Bank violated his rights under the
deposit contracts. The district court granted summary judgment to the Bank.
Kadiyala’s appellate argument encounters multiple obstacles, each of which requires
us to affirm the district court’s judgment.
First, Kadiyala was not an authorized signatory on Account 3998 and had no con-‐‑
tractual entitlement (either as a party or a third-‐‑party beneficiary) to specify how the
balance of that account would be applied.
Second, Pupke unquestionably did have authority over Account 3998 and told the
Bank that the movement of the money was unauthorized. Kadiyala does not identify
any rule of Illinois law (which governs this dispute) providing that, when a bank re-‐‑
ceives inconsistent instructions, it must always prefer the first in time.
Third, EIM, not either Kadiyala or Pupke, was the depositor. EIM was entitled to de-‐‑
cide, through its own rules of corporate governance, who would speak for it. EIM has
never contended that it authorized the transfer of funds from Account 3998 to Account
9378, or that it wants $200,000 disbursed to the person Kadiyala specified.
Fourth, the person who acquires rights under a cashier’s check is the payee. Yet the
payee has not protested the Bank’s reversal of the transfer or the stop-‐‑payment order on
the checks. Kadiyala is not authorized to assert claims on behalf of the payee.
AFFIRMED