Gemstone Foods v. JPMorgan

── Gemstone Foods v. JPMorgan ── Court: Court of Appeals for the Fifth Circuit Date: May 29, 2026 Category: Private Civil Diversity Case: 26-60049 Document: 35-1 Page: 1 Date Filed: 05/29/2026 United States Court of Appeals for the Fifth Circuit ____________ United States Court of Appeals Fifth Circuit No. 26-60049 Summary Calendar FILED ____________ May 29, 2026 Lyle W. Cayce Gemstone Foods, L.L.C., Clerk Plaintiff—Appellant, versus JPMorgan Chase Bank, National Association, Defendant—Appellee. ______________________________ Appeal from the United States District Court for the Southern District of Mississippi USDC No. 3:25-CV-504 ______________________________ Before Richman, Duncan, and Douglas, Circuit Judges. Per Curiam: * Gemstone Foods, LLC, a Mississippi food processor, sent two wire transfers from its account at Regions Bank to pay vendors. Both transfers were diverted by unknown parties into accounts those parties had opened at JPMorgan Chase Bank, N.A. (“Chase”). Gemstone, which has no banking relationship with Chase, sued Chase for negligence and gross negligence in _____________________ * This opinion is not designated for publication. See 5th Cir. R. 47.5.  Case: 26-60049 Document: 35-1 Page: 2 Date Filed: 05/29/2026 No. 26-60049 the opening of the diverting accounts and for violation of Florida’s Uniform Commercial Code. The district court dismissed all claims under Federal Rule of Civil Procedure 12(b)(6), holding that Chase owed no duty of care to Gemstone, a noncustomer, under Mississippi law. Because Midwest Feeders, Inc. v. Bank of Franklin, 886 F.3d 507 (5th Cir. 2018), controls and forecloses Gemstone’s claims, we AFFIRM. I Gemstone is a Mississippi limited liability company. It maintains its operating account at Regions Bank. On July 11, 2022, Gemstone directed Regions to wire $116,489.10 to Food Processing Equipment Company (“FPEC”) for goods. Two weeks later, Gemstone directed Regions to wire $70,689.50 to Arkotex, Inc. for the same purpose. Gemstone alleges that unknown “intermeddlers” diverted both wires into two accounts those intermeddlers had previously opened at Chase. Gemstone further alleges that Chase opened the diverting accounts without verifying the holders’ Social Security or tax identification numbers and without securing required documentation, in violation of industry standards, Chase’s internal procedures, and federal regulations. Nearly three years later, on July 10, 2025, Gemstone sued Chase in the United States District Court for the Southern District of Mississippi. Gemstone raised three claims: negligence, gross negligence, and violation of Article 4A of the Florida Uniform Commercial Code. 1 Chase moved to dismiss under Rule 12(b)(6). The district court granted the motion and _____________________ 1 The district court dismissed Gemstone’s Article 4A claim as abandoned because Gemstone made no effort to defend it in opposition to the motion to dismiss. Gemstone does not pursue that claim on appeal, and any argument related to it is forfeited. See Rollins v. Home Depot USA, 8 F.4th 393, 397 & n.1 (5th Cir. 2021).