Dishman v. Hill

SHEPARD, Chief Justice.

In an action under Indiana Code § 28-2-8-1 to collect on a check for which payment was stopped, what constitutes "valid legal cause" for the order to stop payment such as to permit the maker to avoid interest and attorney fees? We hold that "valid legal cause" means a defense held legally adequate by the trial court hearing the trial of the action.

This litigation arose after appellee Vera Jean Hill purchased a used automobile from Linda Dishman on Saturday, August *6555, 1989. Hill paid for the car with a personal check for $550. The car was sold without a warranty, or "as…