The Bernhards sued their bank for failing to stop unauthorized electronic transfers from their account by a contractor they hired. The bank removed the case to federal court claiming federal jurisdiction under the Electronic Funds Transfer Act (EFTA). The appeals court ruled the district court had no federal jurisdiction because state negligence claims aren't automatically covered by federal law, and sent the case back to Louisiana state court. This matters to subcontractors because it clarifies that disputes over unauthorized payments by contractors remain state law matters, not federal ones.
If a contractor steals from you via electronic transfer, your negligence claim against the bank stays in state court—federal law doesn't automatically take over just because electronic funds are involved.