Hewitt v. Capital One, N.A.

Plaintiffs filed a lawsuit for breach of contract after Capital One resigned as custodian of plaintiffs’ individual retirement account funds and transferred them to a successor custodian. Plaintiff alleged that Capital One acted imprudently in choosing a successor custodian that would pay less than the plaintiffs’ investments had previously earned. The district court granted judgment for defendant Capital One relying on a clause exculpating Capital One from liability for any loss caused by successor decisions. The Seventh Circuit affirmed, but on different grounds, finding that Capital One did not break any promise it made to the plaintiffs. (SCUDDER and KIRSCH, concurring)