Kedzie and 103rd Currency Exchange, Inc. v. Hodge

We consider here whether a holder in due course of a check is precluded from payment as against the drawer where the check was given in exchange for contract services for which the provider was required to be, but was not, a licensed plumber. We conclude such a claim is not precluded.

BACKGROUND

Pursuant to a written “work order,” Fred Fentress agreed to install a “flood control system” at the home of Eric and Beulah Hodge of Chicago for $900. In partial payment for the work, Beulah Hodge drafted a personal check payable to “Fred Fentress — A-OK Plumbing” for $500 from the Hodges’ joint account…