Smith v. Southeastern Financial Corp.

The United States Court of Appeals for the Fifth Circuit certified to our Court pursuant to Article 5, Section 140 (b)(3) of the Alabama Constitution, as amended, 1973. The facts and questions certified to this Court are as follows:

"Appellee, Southeastern Financial Corporation (`Southeastern'), instituted this action against Appellant, John Smith (`Smith') for recovery of three worthless checks, together with a reasonable attorney's fee and punitive damages.

"Prior to the events underlying this action, Southeastern entered into a factoring agreement with Danube Carpet Mills, Inc., whereby…