Law- Check Cashing Essays

969 WordsJul 28, 20134 Pages
Any Kind Checks Cashed, Inc. was a holder in due course in its case v. Talcott. In this case and elderly gentleman John C. Talcott, who was defrauded the sum total of $15,700 in the form of two checks, $10,000 and $5,700 respectively. Both checks were issued to D. J. Rivera and were later cashed at Any Kind Checks, Inc. by Salvatore Guarino. Talcott stopped payment on both checks after the initial check was an over payment and the second was discovered be conceived by fraud. Both checks were returned to Any Kind Checks Cashed, Inc. Any Kind Checks, Inc. brought suit against Talcott and Salvatore Guarino (Twomey & Jennings, 594-597). Any Kind Checks, Inc. claims that it was a holder in due course with both checks and because they knew…show more content…
When Rivera called Talcott the following day (January 11) and stated that he needed a smaller sum, $5,700, there was no mention as to how the difference was to be returned to Talcott. Talcott immediately canceled the check and issued a new check for deposit. At the point that Rivera told Talcott that the $10,000 check was not needed, he should have returned or destroyed the check. Further, Talcott should not have issued another check until he was assured that the first check would not be deposited. Any Kind Checks, Inc. appears to have had an internal policy to verify the authenticity of checks over $2,000. Further, since the check was being cashed by a third party, this demonstrates that Any Kind Checks, Inc. had even more reason to do their due diligence and verify. Their lack of verification makes them complicit in the violating the ‘good faith doctrine’. § 673.3021(1), Fla. Stat. (2001). Since Any Kind Check, Inc. was not a holder in due course they have no right to try and enforce Talcott’s obligation to pay the draft. § 673.3051(1) & (2), Fla. Stat. (2001). Any Kind Checks, Inc. was a holder in due course with respect to the second check issued by Talcott. In that portion of the case Any Kind Checks, Inc. did their due diligence in investigating whether or not the check should be cashed. After contacting Talcott by phone, it was determined that the check was eligible to be cashed (Seinfeld v. Commercial Bank & Trust Co., 405 So.2d 1039, 1041 (Fla. 3d
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