Legal Question in Civil Litigation in California

Re: Holder in Due Course

UCC Section 3-302 (California Commercial Code Section 3302) (www.leginfo.ca.gov) provides that a "holder in due course" can enforce the instrument without regard to certain defenses asserted by the maker if both of the following apply:

(1) The instrument when issued or negotiated to the holder does not bear such apparent evidence of forgery or alteration or is not otherwise so irregular or incomplete as to call into question its authenticity.

(2) The holder took the instrument (A) for value, (B) in good faith, (C) without notice that the instrument is overdue or has been dishonored.

Your situation is problematic because as a small claims plaintiff you have no right to appeal, and there is no record of what happened in court such as a reporter's transcript or a statement of decision.

The next time you are in this situation, file a non-small claims civil suit, demand a statement of decision before the end of the trial, and if the ruling goes against you, appeal.

You could possibly resell the checks to someone else for whatever you can get, and let the next holder-in-due-course sue....