Check cashing

[mungus]

I had an automotive service center replace my transmition. I gave them three checks at the time. #1 May 30th 2002 for $650 #2 June 12th 2002 for $200 #3 June 25 2002 for $175

Check # 1 was cashed as planned.
Check # 3 was cashed on June 7th causing many overdrafts
Check # 2 was presented for cashing on June 14th
I placed a stop payment on check # 2 until the 25th of June when the last check was supposed to be cashed.

He is threatining to take me to court over the $200. I am willing to pay him the $200 minus the overdraft fees and stop payment fee.
Should I let him take me to court or should I pay him the $200. I live in Wisconsin

 

[Michael Wechsler]

Question -- was it agreed that those were the earliest times the checks could be cashed? If so, then I would think he can go to court and you would not only get the fees, but you might even be awarded damages. Given the fact that there are dates on the checks, the plaintiff would have a difficult time explaining his actions, IMHO. You may ask the judge for punitive damages because there is no valid dispute. If he agrees that the checks should not have been cashed (or is proven to given the dates) then he had no dispute and abused the court system.

You are probably best off giving him check #3 minus the overdraft fees. I'd write on the check "paid in full" as well. You have leverage IMHO... but as you know, nothing here is "legal advice" but legal discussion.

 

[quuen]

"A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty..." (Compare this to the parallel provision in your state's law to see if there are any variations.)