I am being sued for issuing a stop payment on a check?

Question

I paid my gardener $3000 to do some landscaping work. He did not perform the work in a timely manner, so I issued a stop payment on the check. Later He finished the work, so I paid him. Come to find out a few months later that he cashed the check. Now the check cashing company is suing me for the $3000 stating they are "holder in due course". Do they have a legal write to do this. I have consulted with 2 attorneys and they could not give me an answer and did not want to represent me because of the small amount of the suit.

Answer 1

You need a pro bono lawyer...not the Johnny Cochrane-types.

Anyway if you're gardner did make good on the job requirement and was ultimately paid why is a cheque still in question?

Did he cash the cheque that you issued a stop payment on?

Or did you pay him with another cheque or an alternative method of payment?

So he cashed the cheque at a shark shop. How could they not have gotten their share if he got his? Sounds fishy to me

The only issue with stop payments is they are effective with a bank I don't know how well they work with cheque cashing stores. Who did you issue the stop payment to? I mean did you call your bank? If you did there will be record of it....just get a copy of it and you're cool.

Answer 2

This sounds like the check cashing place wasn't doing their job ... they should never have cashed a check with a stop payment on it . And as far as I know , they were wrong to do so ... Let them bring you to court...the court will sort it out . Don't pay them unless there is a judgment against you .

Answer 3

A "Holder in Due Course" is covered under  ÃƒÂ‚§ 3-302 of the Uniform Commercial Code(UCC).  So yes they do have a legal right because they cashed the check and are considered an "innocent party".  Now, if they did not do something that could have avoided this you may be able to prevail.  This is where a lawyer can help you out with your specific situation.

Now, $3,000 is not a small amount to most people.  While you probably won't find a lawyer to represent you in court, you should be able to at least get a consultation with one.  They may charge you a couple hundred dollars but in the end it would be worth it if you prevail.

However, if you do loose your only option would then to go after the Gardener for cashing the check you made a stop payment on AND taking the money you finally paid him.  Hopefully, you have proof of the double payments.

Answer 4

Small Claims Court is your best answer.  I hope that you have the proper documentation of all transactions.  How did you pay him when he completed the work?? Did you write another check or did you give him cash.

When I paid my Gardner cash for a special job, I had him to sign a piece of paper--today's date, amount received, and what he did for that amount.  Sometimes people forgive that they have been paid when cash is involved.

Answer 5

Hopefully you have a receipt for the 2nd payment.  I had the same thing happen and ended up paying the stupid check cashing company.  I think it was their risk in cashing the check and they should go after the gardener, that is why they have stop payments.  Maybe you could also let the gardener know as it was fraud on his part.  Good Luck

Answer 6

IF you paid him BEFORE he did the work, you were foolish to begin with. Now he has gotten paid TWICE! And YOU are responsible for paying the check cashing company. You must now sue the gardener to recover the money to pay the check cashing company. NEVER pay for services until they are complete.

Answer 7

3000$ is not exactly small change in my opinion.

How did it take "few months later" to determine that 3000$ was paid out?