Background
Plaintiffs Monarch Air Group and David Gitman sued JPMorgan Chase Bank after the bank canceled wire transfers to Monarch and notified customers that the transactions failed due to sanctions or internal policy. Monarch alleged defamation and tortious interference, claiming the bank falsely accused it of sanctions violations. The district court granted summary judgment for the bank, striking Monarch’s procedural filings and ruling that the statements were privileged and not made with malice.
The court’s reasoning
The Eleventh Circuit affirmed on two independent grounds. First, the court found the bank’s statement true under Florida law because the phrase ‘sanctions and/or internal policy’ was true if either condition was met, and the bank confirmed it acted under internal policy. Second, the court held the statements were protected by qualified privilege as they were made in good faith to customers with a corresponding interest in knowing why transactions were canceled. The court also found no evidence of express malice, as Monarch failed to show the bank knew the statements were false.
What it means going forward
The ruling reinforces that banks may communicate transaction cancellations based on internal policies without facing defamation liability, provided the statements are not made with actual malice and are protected by qualified privilege.