Negotiable

Case 24-5

Were the Checks Negotiable in the Triffin v. Somerset Valley Bank Case?

Maureen Brown

Ohio Dominican University

Were the Checks Negotiable in the Triffin v. Somerset Valley Bank Case?

This is a case which involves enforceability of dishonored checks against the issuer of checks under Article 3 of the Uniform Commercial Code (UCC) ("M ore l," 2001). Robert Triffin, who dealt with negotiable instruments, had filed a lawsuit against Hauser Co. in 2001. Triffin had ostensibly purchased eighteen checks totaling over $8,000.00 from numerous check-cashing agencies. The agencies had cashed the checks stating they were expecting the bank to pay them, however the checks were returned to the agencies marked stole check, and stamped do not present again. The bank essentially refused to cash the checks (Clarkson, Miller & Cross, 2012 p. 378). The suit was filed to enforce Hauser Co.’s liability on the checks ("M ore l," 2001). The check cashing companies had indicated they cashed the checks in “good faith”, without notice of any claims or defenses to the checks and without the knowledge the signatures on the checks were unauthorized or forged and also with the belief the checks would be paid upon presentment to the issuing bank (Meislik & Meislik, 2001). Good faith for all intents and purposes means the honesty and fairness when dealing with others (Meislik & Meislik, 2001).

When Triffin filed the suit, he stated this was negligent in failing to safeguard payroll checks written from the company and the authorized facsimile signature stamp (Meislik & Meislik, 2001). This was unforeseen by Triffin and he should be granted judgment in this case. The court decided to grant the purchaser, Robert Triffin was to obtain the judgment in the case for the reason that there was no unpretentious issue of fact as to the authenticity of the eighteen checks and because each check cashing company took the checks in “good faith” and the...