D.J. Rivera fraudulently induced John G. Talcott Jr. (defendant) to send Rivera a check for $10,000 made out to Salvatore Guarino (defendant). The following day, Rivera told Talcott that the $10,000 was unnecessary and requested that Talcott instead send $5,700. Talcott stopped payment on the $10,000 check and sent Rivera a check for $5,700 made out to Guarino. Guarino brought the $10,000 check to Any Kind Checks Cashed, Inc. (Any Kind) (plaintiff) to be cashed. Guarino told Any Kind’s manager, Nancy Michael, that Guarino was a broker and that the check was intended as an investment. Michael tried but was unable to contact Talcott by phone. Michael cashed the check and deducted a 5 percent fee. Guarino returned to Any Kind to cash the $5,700 check. Michael instructed the teller not to cash the check until Michael obtained Talcott’s approval. Talcott approved, by phone, cashing the $5,700 check, but there was no discussion of the $10,000 check. Any Kind cashed the $5,700 check and deducted a 3 percent fee. Talcott then stopped payment on the $5,700 check. Any Kind sued Guarino and Talcott, claiming that Any Kind was a holder in due course. At trial, no evidence was offered concerning the general practices of the check-cashing industry. The trial court entered judgment in favor of Any Kind for the $5,700 check but held that Any Kind was not a holder in due course in relation to the $10,000 check, because the circumstances should have put Any Kind on notice of defenses or claims against the check. Any Kind appealed.