Legal Opinion
Gentner and Company, Inc. v. Wells Fargo Bank
California Court of Appeal
Decided December 9, 1999No. B128574PublishedCited by 1 opinion
1Opinion of the Court
Opinion
CURRY, J.
This case presents the issue of whether a bank that erroneously accepts an endorsed check on which a stop payment order has been placed, and issues a cashier’s check to the payee in the same amount, can thereafter refuse to pay the cashier’s check. We conclude that as between the bank and a payee who acts in good faith, the Commercial Code 1 clearly requires the bank to suffer the loss occasioned by its error in accepting or paying a check covered by a stop payment order, and that the result is the same whether the check is paid in cash or exchanged for a cashier’s check.
Factua…
2Cases cited22 opinions
- Tpo Incorporated v. Federal Deposit Insurance Corporation, as Receiver of Eatontown National BankCourt of Appeals for the Third Circuit · 1973
- Nat. Newark & Essex Bank v. GiordanoNew Jersey Superior Court Appellate Division · 1970
- Wertz v. Richardson Heights Bank and TrustTexas Supreme Court · 1973
- Kaufman v. Chase Manhattan Bank, National Ass'nDistrict Court, S.D. New York · 1973
- Max Munson v. American National Bank and Trust Company of Chicago, Max Munson v. American National Bank and Trust Company of ChicagoCourt of Appeals for the Seventh Circuit · 1973
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3Cited by1 opinion
- Flatiron Linen, Inc. v. First American State BankSupreme Court of Colorado · 2001