Is bank responsible for theft by title agent customer?

Should a bank be responsible for the misappropriation of funds held in escrow by a title agent customer? The U.S. District Court for the Eastern District of Wisconsin issued an opinion in a case seeking to answer that question. After discovering its agent had misappropriated escrow funds, a title insurer sued the bank where the agent held its escrow funds, arguing the bank knew or should have known about the theft.