Stopped Payment on Check

[HelpinAZ]

The state or country I am talking about is: Arizona, Maricopa County

Hello,

In the fall of this past year I purchased a new home and sought a contractor to do some renovations. To make a long story short, the contractor that I ended up speaking to and issuing a check to him for one half of the work ($7000) was not who he represented himself to be. I learned this the next morning after having written the check when the "real" contractor appeared at my home and told me that his cousin had posed as him for our meeting, etc. This was a Sat. morning. I immediately contacted my bank that morning and placed a stop payment on the check. I then contacted the individual who represented themself as "Alex" (the contractor to whom I had been referred initially) and told them the situation- that I had placed a stop payment on the check.

It is now mid-march. I have since moved into my new home (in the fall) and just this past Sat. received a judgement against me in the amount of the check. This was the first I had heard anything about this matter since contacting the contractor, and stopping payment of the check. The check was cashed at a check cashing establishment and they are the plantiff in this case.

One final detail. In contacting the court to let them know that I never received a summons in this matter and therefore had no notice to defend myself in this matter, I was told that in fact a summons had been served in December at my previous address. I did not live at that home in December, having moved in October of that same year.

My question is two-fold. First the issue of the summons. It strikes me as odd that just anyone could accept a summons when they are not the party in the matter. In this case, I have no relationship with the individuals who purchased my former home, nor was I notified by them that this matter had transpired. It would seem that someone would have had to sign the reciept of the summons or something beyond knocking at the door and handing it over to a person that they could not possibily have verified was me.

My second and more pressing question is if I have any liability in this matter and how to proceed in defense of myself in this matter? I feel that my actions were proper given the circumstances:

a. The individual to whom I wrote the check obtained this through a fraudulent claim.
b. The stop payment was placed on the check within 24 hours of it being written.
c. The individual to whom the check was written was notified immediately after the stop payment was in place and was advised of this.

Could you please advise me of my rights in this matter and point me to any state statutes, case law, etc. that I may use in defense of this matter.

Thank you!

 

[freebird]

1) You are correct that anyone can accept a summons. But that doesn't mean any judgment is enforceable. It isn't!!! That alone would get you off the hook. You can do an "order to show cause" to dismiss the case based upon the fact that service was improper and not to you. That doesn't mean the plaintiff won't refile.

2) Regarding liability for being defrauded in general, a bank does not bear the loss when the check drawing instrument has your signature is presented for payment. The fact that you may or may not be satisfied with the work or other factors is not important to them, only that you signed and thus authorized the check for payment. It would be impractical for them to do otherwise and the responsibility is yours to do your homework. This is called "fraud in the inducement" as that signature IS your signature and you were induced into signing it. The fact that you later found out you were defrauded doesn't mean the bank has to pay. HOWEVER, your defense is not necessarily a losing one.

3) Exactly when did the bank cash the check? I'm assuming that the plaintiff is NOT your bank but a second bank? I'm not sure of the laws regarding how long a bank must take to clear a check (now the float times are much less with electronic checks) but the bank may not have requested clearance from your bank at the time of payment. That is a valid defense but you should find out the procedures from your bank.

4) You should implead the imposter and you may want to include the owner of the construction company -- after all, how did his cousin know when and where to show up for this meeting? Did you report the cousin to the police and attorney general? This might bee grand larceny.

Let us know what's going on with your case and luck!!!!

The state or country I am talking about is: Arizona, Maricopa County

Hello,

In the fall of this past year I purchased a new home and sought a contractor to do some renovations. To make a long story short, the contractor that I ended up speaking to and issuing a check to him for one half of the work ($7000) was not who he represented himself to be. I learned this the next morning after having written the check when the "real" contractor appeared at my home and told me that his cousin had posed as him for our meeting, etc. This was a Sat. morning. I immediately contacted my bank that morning and placed a stop payment on the check. I then contacted the individual who represented themself as "Alex" (the contractor to whom I had been referred initially) and told them the situation- that I had placed a stop payment on the check.

It is now mid-march. I have since moved into my new home (in the fall) and just this past Sat. received a judgement against me in the amount of the check. This was the first I had heard anything about this matter since contacting the contractor, and stopping payment of the check. The check was cashed at a check cashing establishment and they are the plantiff in this case.

One final detail. In contacting the court to let them know that I never received a summons in this matter and therefore had no notice to defend myself in this matter, I was told that in fact a summons had been served in December at my previous address. I did not live at that home in December, having moved in October of that same year.

My question is two-fold. First the issue of the summons. It strikes me as odd that just anyone could accept a summons when they are not the party in the matter. In this case, I have no relationship with the individuals who purchased my former home, nor was I notified by them that this matter had transpired. It would seem that someone would have had to sign the reciept of the summons or something beyond knocking at the door and handing it over to a person that they could not possibily have verified was me.

My second and more pressing question is if I have any liability in this matter and how to proceed in defense of myself in this matter? I feel that my actions were proper given the circumstances:

a. The individual to whom I wrote the check obtained this through a fraudulent claim.
b. The stop payment was placed on the check within 24 hours of it being written.
c. The individual to whom the check was written was notified immediately after the stop payment was in place and was advised of this.

Could you please advise me of my rights in this matter and point me to any state statutes, case law, etc. that I may use in defense of this matter.

Thank you!

 

[leah_allison]

Is this stop payment proper and binding?

I sold a painting to a client, delivered it to their home at their request. They hung it on the wall, and gave me a check for the amount, and they rushed out of the house because they had an appointment. I sent them a statement of the sale marked final sale. Eight days later, they stopped payment on the check. I had already deposited it in the same bank upon which it was drawn, and withdrqwn money against it [actually, paid two of my debit card payments electronically]. A week later, I received a note from the bank, with the returned check, and a debit to my account for the amount. The stop payment was dated the day after I paid the two bills, although one was reflected as having been paid the same day as the SP. I wrote the client a letter demanding the amount in question. Two weeks later, the client left the painting at my driveway gate, @150 feet from my front door, withour authorization or acceptance, and called it a return of the merchandise. I filed a claim in Small Claims Court, demanding the amount. The client wrote me a letter threatening me if I did not withdraw the claim. [I have been in touch with the bank, explaining banking law etc. as well as the facts of the matter, but they are steadfast in their action]. Question: Does the fact that the painting was "returned" affect my claim - This is New York; Does the fact that the bank paid my bills, even though my account with them is negative in the amount negate the client's obligation to me? Thanks, LA