Florida  |  Business Law

Legal Question

Asked on: 3/03/09, 5:52 pm

Stop Payment on Check -- Sued by Check Cashing Company

I am threatened by a local check cashing company with a lawsuit after they cashed a check for someone after I had stopped payment. The person to whom I wrote the check never returned to my home to complete the repairs for which he was paid and he obviously never intended to complete those repairs when he cashed the check. The check cashing company never bothered to check with me or my bank as to whether there might be problems in getting the check paid. If the standard practice is to verify or not to cash third party checks at all, can they still claim I am at fault under Florida Statute 865? Would a court really award them triple damages even though I was only trying to protect myself against fraud? The amount involved is not huge and I have offered the check cashing comapny to pay them for the value of the work already done. But I think they could have been more careful in this case (the FL AG office also advises people not to cash third party checks and similar companies thay I querief said they wouldn't do it either or would verify with the bank first. Is thsi company still entitled to be a holder in due course?

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