½ Price Checks Cashed v. United Automobile Insurance Co.

Article 3 of the Uniform Commercial Code (UCC) 1 establishes a comprehensive scheme governing the procedures, liabilities, and remedies pertaining to negotiable instruments, including checks. 2 As part of that scheme, when a bank dishonors a check, the drawer 3 of the check is obligated to pay the amount of the check to the check’s holder 4 according to its terms at the time it was issued. Tex. Bus. & Com. Code § 3.414(b). 5 Neither section 3.414, nor any other provision of the UCC, provides for the recovery of attorney’s fees in those circumstances. But a general statute for civil suits —…