First Wisconsin National Bank of Madison v. Stiennon (In Re Stiennon)

MEMORANDUM DECISION

ROBERT D. MARTIN, Chief Judge.

Schroer Hardware Lumber Co. (“Schroer”) drew a check for $10,000.00 payable to O. Arthur Stiennon. On or about January 16, 1986, Stiennon deposited the check in an account at the First Wisconsin National Bank of Madison (“First Wisconsin”). Before the check cleared the bank permitted Stiennon to withdraw $10,-000.00 from the account. Stiennon deposited the $10,000.00 in a trust account held by his attorney.

Schroer issued a stop payment order to its bank which in turn refused to honor the check when presented by First Wisconsin. On February 6,…