Narrative Opinion Summary
In this case, a dispute arose between a construction supply company (Builders) and a bank over the bank's refusal to honor two cashier's checks totaling $4,198.53 issued to Builders after verifying checks from a construction firm (Almada). The bank later stopped payment on the cashier's checks, leading Builders to appeal the trial court's judgment, which favored the bank. The appellate court held that the trial court erred, citing the Oklahoma Uniform Commercial Code, which treats a cashier's check as accepted at issuance, thus preventing the bank from stopping payment. The court relied on precedent from Wertz v. Richardson Heights Bank & Trust, reinforcing that the bank's action was improper. Consequently, the appellate court reversed the trial court's judgment, remanding the case with instructions to award Builders the full amount of the cashier's checks, minus $874.09 already reimbursed, along with statutory interest from the judgment date. The court rejected the bank's assertion that Builders had accepted a lesser amount, affirming Builders' right to the full payment.
Legal Issues Addressed
Cashier's Checks under the Uniform Commercial Codesubscribe to see similar legal issues
Application: The court determined that a cashier's check is considered accepted upon issuance, preventing the bank from stopping payment.
Reasoning: The court referenced Oklahoma's Uniform Commercial Code, asserting that a cashier's check is considered accepted at the time of issuance, thus barring the bank from stopping payment thereafter.
Precedent in Banking Lawsubscribe to see similar legal issues
Application: The court cited Wertz v. Richardson Heights Bank & Trust to support its conclusion that the bank could not stop payment on the cashier's checks.
Reasoning: The precedent set in Wertz v. Richardson Heights Bank & Trust was cited to support this conclusion.
Right to Full Payment on Cashier's Checkssubscribe to see similar legal issues
Application: The appellate court affirmed Builders' entitlement to the full amount of the cashier's checks, minus any amount already reimbursed, and statutory interest.
Reasoning: The appellate court reversed the trial court's decision and remanded the case, directing the trial court to enter judgment for Builders for the full amount of the cashier's checks, less the $874.09 already reimbursed to Builders, plus statutory interest from the judgment date.