We wrote a check for $500.00 to a private party who was expected to paint a car we were restoring. This man dropped our car off in our driveway, with nothing done on it. We placed a stop payment on the check that day. The man cashed the check at a check cashing place. They cashed it without even a phone call to us to verify it. Needless to say, I would have immediately told them not to cash it. Our bank said we are not liable. Now we have a court date in September with the check cashing place. I plan on bringing all the info I have. What chances does the check cashing place have of winning, or what or my chances of winning?
In this case, the odds would have to be placed firmly in favor of the check casher, who had no duty to contact you before cashing the check, and who had no knowledge of your dispute with the payee.
While your bank is correct that your stop payment is effective and the bank can't pay the check, the check casher has rights under the Uniform Commercial Code to enforce the check directly against you.
Your dispute is with the payee of the check. Check with legal counsel to see whether it's wise to try to take care of the check casher's claim and get the court case dismissed, and how to go after the person who should have done work for you and who was unjustly enriched by the check proceeds.
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In this case, the odds would have to be placed firmly in favor of the check casher, who had no duty to contact you before cashing the check, and who had no knowledge of your dispute with the 