Bank of Louisville Royal v. Sims

CLAY, Commissioner.

Appellee recovered $631.50 for the wrongful dishonor of two small checks. This sum included the following items of damage: $1.50 for a telephone call; $130 for two weeks’ lost wages; and $500 for “illness, harassment, embarrassment and inconvenience”. The trial court, trying the case without a jury, found that the dishonor was due to a mistake and it was not malicious.

KRS 355.4-402 provides:

“A payor bank is liable to its customers for damages proximately caused by the wrongful dishonor of an item. When the dishonor occurs through mistake liability is limited to actual…