In this case,  the credit union brought an action against Carol and Donald Phillips and their seventeen year old son after the son stole a check from his parents, forged his mother’s signature and made the check payable to himself.

The son then presented the check to the credit union and obtained $2,200.

Most states have statutes which impose liability on the parents of unemancipated minors for actual damages to persons or property caused by any tort intentionally committed by said minor.

The state statutes normally also contain the limit of liability on the parent(s). In this case, the Oregon statute provided a limit of liability against the parent(s) in the amount of $5,000, hence, the credit union could claim the entire actual loss of $2,200.

Due to the son’s intentional act of forging his mother’s signature to the check and obtaining the funds from the credit union under false pretenses, the trial court entered judgment against both the son and his parents for the actual loss caused by the transaction.

On appeal, the appellate court affirmed the liability of the parents and minor, however, the appellate court denied an award of punitive damages and attorney fees.

The credit union nonetheless prevailed on the merits of the action against the parents and the minor child. Rogue Federal Credit Union v. Carol & Donald Phillips, Court of Appeals of Oregon (Case Nos. 91-2182-L-1 & CA-A75792).

Author: Charles R. Harroun, Attorney at Law