Bhagnanji D. Patel and Jyotiben B. Patel, His Wife v. James B. Gannaway

JOHN R. GIBSON, Circuit Judge.

Bhagnanji D. and Jyotiben B. Patel’s attempted purchase of a leasehold interest in a Lonoke, Arkansas motel resulted in the loss of their $40,000.00 down- payment. Their loss occurred when the local bank foreclosed on the property because the seller, Billy Ray Canterberry, defaulted on a series of promissory notes. Bhagnanji Patel had deposited an unendorsed check for $25,729.54, representing part of the $40,-000.00 down payment, with appellee James B. Gannaway. The Patels claim that Gann-away’s acceptance of the check and other circumstances of their dealings…