Lynnwood Sand & Gravel, Inc. v. Bank of Everett
Washington Court of Appeals
33 UCC Rep. Serv. 1703 (1981)
- Written by Sarah Holley, JD
Facts
On December 23, 1977, Lynnwood Sand & Gravel, Inc. (plaintiff) issued a check drawn on Bank of Everett (defendant) for Western Cedar Products, which Western then deposited in its account at Peoples National Bank. Peoples gave provisional credit for the check and, in so doing, reduced a then-existing overdraft in Western’s account by the full amount of the check. On December 27, Lynnwood issued a stop-payment order with respect to the check. On December 28, Everett returned the check to Peoples with the notation, “non-collected funds, refer to the maker.” On January 5, 1978, Peoples resubmitted the check to Everett, which Everett paid. Lynnwood brought suit against Everett to recover the amount of the check. Lynnwood appealed the district court’s grant of summary judgment in favor of Everett.
Rule of Law
Issue
Holding and Reasoning (James, C.J.)
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