Both are strictly controlled, high security check stock that were designed with Frank Abagnale, one of the world’s foremost authorities on fraud prevention. Later, he cashes the first check #12345 at a check cashing store. In the appeal, Pomerantz claimed that it did not sign the checks, which also did not come from its check stock. Issue: High Security Checks May Protect You From Some Holder in Due Course Claims. Both parties filed cross-motions for summary judgment.. Check-writers beware: your checks can be cashed more than once ... Twice in the past year, she wrote checks to pay for small services such as yard work. This is how legal exposure to a Holder in Due Course claim can be and is created. All 18 checks were returned unpaid, likely caught by Positive Pay. www.bakerlaw.com/toddhlebowitz – What to Watch For Robert Triffin bought those checks and filed suit against Pomerantz. Unfortunately, the drawer issuing the check can be held liable for both checks. Hauser appealed, but the Federal Appellate Court upheld the lower court. In simple terms, a Holder in Due Course is anyone who accepts a check for payment. All involve Robert J. Triffin, a Pennsylvania resident who is in the business of purchasing dishonored instruments (checks), acquiring Holder in Due Course status and suing the maker for recoupment. Shout It Like a Helium-Filled Gator: Don’t Limit Your Arbitration Agreements to Work-Related Disputes, Whaddaya Call It? Here’s a Quick Tip To Improve Your Independent Contractor Agreements, DOL Can’t Go For That (No Can Do), Appeals Joint Employment Ruling, Say Say Say: How Not to Bungle an Independent Contractor Relationship, Election News: California Voters Adopt Prop 22; Kentucky Voters Elect Dog as Mayor, Time: More than Just a Pink Floyd Song (and Here’s What Happened This Week with Independent Contractor Cases), Signs of Trouble: California Ruling Raises Stakes for Ride Share. The answer is No. Note:  The Check 21 Act only applies to electronic double dipping. By the time the check is discovered to be fraudulent, the … Cashing or depositing a check twice is known as a double presentment, and it can happen unintentionally in a couple of different ways: 1. Regulatory and public image issues constrain a company or municipality from waiting 180 days before re-issuing a replacement check for a check that allegedly was lost. Abagnale can be contacted at (800) 237-7443. Check #12345 hits Good Company’s bank account, and is returned "payment stopped" to the check cashing store. Enter your email address to follow this blog and receive notifications of new posts by email. Cashier's checks are treated as guaranteed funds because the bank itself, rather than an individual, is responsible for paying the check amount. He can be contacted at GLITSTER@aol.com and greg@safechecks.com, or by phone at (800) 949-2265. At that point the check cashing store becomes a Holder in Due Course. The only thing is that the mobile deposit was PENDING when I cashed it, not already accepted. Cause the recipient to sign an affidavit declaring the check was not deposited remotely, and accepts liability for all expenses to recover any stolen funds. Louise Moon Rosales had two checks cashed twice. Asked on July 11, 2013 under Employment Labor Law, Oklahoma . Who must pay? A short expiration time printed on the face of the check may help your organization avoid HIDC claims. It also found that because the checks appeared to be genuine, Hauser Co. was required, but had failed, to show that the check cashing stores had any notice that the checks were not validly drawn. Mr. Triffin bought the checks, claimed Holder in Due Course status and sued Pomerantz. While this problem can arise in many scenarios, including with regular W-2 employees, it seems to be occurring more frequently with staffing agency employees, PEOs, temps, and other short-term workers. Dishonest Dave receives the check, holds onto it, and two weeks later calls Good Company claiming he never received the check. Recommendations: Use high security checks that include properly worded warning bands and overt and covert security features to help prevent check fraud losses, including some Holder in Due Course claims. 370 N.J.Super. 297 N.J. Super. I issued a check to an employee. Further, a bank cannot be held liable for paying a stale-dated check. My employer has called me to tell me that my payroll check was cashed twice. A Holder in Due Course has three years from the date a check was dishonored or ten years from the date the check was issued, whichever period expires first, to sue the maker for recoupment (§ 3-118). The checks were returned unpaid by the bank and marked as “Stolen Check - Do Not Present Again.” In February and March 1999, Robert Triffin purchased 18 of these dishonored checks totaling $8,826.42 from four check cashing agencies. But, she warns, wait until those checks clear, too. Consider this scenario: Good Company issues check #12345 for $5,000 and mails it to Dishonest Dave. Many checks have verbiage printed on the face that says: VOID AFTER 90 DAYS or VOID AFTER 180 DAYS. They shouldn’t be. Well, come the next business day, the mobile deposit was accepted after I already cashed that check. The issuing person or company reissues a new check payable to John Doe or Jane Doe. It’s negotiable, like a live check. Such security features will also help prevent other kinds of check fraud. Robert J. Triffin obtained the check from Sun’s Market, became the new HIDC, and filed this lawsuit against Cigna in August 1995, over two years after the check was returned unpaid. Mr. Hauser reviewed the checks and ascertained that, while the checks looked like his checks, they were counterfeits because none of the payees worked for him and he did not authorize anyone to sign those checks on his behalf. Check your email address to follow this blog and receive notifications of New Jersey, Appellate.. Board predicts that almost half of all mobile users will adopt mobile banking in one capacity another! Posted on WhoIsMyEmployee.com, Exploring issues of Independent Contractor Tip Court granted mr. Triffin summary judgment the... Service offered by many banks called Positive Pay suspicious and called him entitled! Expired check has no HIDC basis if the checking account is not on Positive Pay will staledated... Offered by many banks called Positive Pay, the lower Court ruled for.! Is because the second check was refunded by the government as “ Stolen check - do not Present Again... 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