Can I sue the bank for negligence if they cashed a check on my behalf when they were suspicious about it from the beginning? Instead of contacting the bank on which the check was written, they sent it to the Federal Reserve for verification which took 10 days.
After 10 days, the check cleared the Federal Reserve (suprisingly because it turned out to be a fake check, but a real bank) and I was given the okay to spend the money. About 10 days later, the check was returned as a fake check and it was for more than $10,000. The bank's defense is that they cashed the check in "good faith" because I was a customer and I should have known it was good.
Were they not negligent? If they had made just 1 or 2 phone calls to verify the check, we would not have an issue today. Can I fight this civily?
This case has already been heard in Court and I was ordered to repay the bank, however I feel the bank has some SHARED responsibility. The bank never even notified me about the check. I found out that it was fake when the police showed up at my place of business to question me. It could have possibly been resolved sooner and more professionally if they had contacted me directly instead of playing "footsy" with me.
After all, as a customer, the bank owes me a duty of care, correct? It is their position to let me know whether a check is a good or bad. Regardless of if I know the party who wrote me the check, the bank still has the resources to know whether or not a check is good or bad. They have the resources, I do not!
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Securities / Investment Fraud Attorney - Washington, DC
Contributor Level 20
You seem to be leaving out a key fact - how you obtained the phony check. If a reasonable person would have been suspicious about its origins, you are looking at not only losing but likely being sanctioned by the court for filing a frivolous lawsuit.
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