American Airlines Employees Federal Credit Union, Petitioner v. Tim Martin, Respondent

Summary

The Texas Supreme Court held that Texas Business and Commerce Code §4.406(d) may be modified by agreement, and that the parties’ Deposit Agreement shortened the notice period to sixty days. Because Martin failed to give notice within that period for ten of the fourteen unauthorized withdrawals, those claims were barred and the court reversed the appellate judgment on those transactions, while affirming the judgment on the remaining four withdrawals. The Court also held that Article 4A does not apply and that the Deposit Agreement was enforceable despite being an adhesion contract. Justice Abbott dissented, arguing that the sixty‑day provision was not enforceable and that §4.406 does not apply.