Quimbee logo
DMCA.com Protection Status
From our private database of 18,400+ case briefs...

Maine Family Federal Credit Union v. Sun Life Assurance Co.

Supreme Judicial Court of Maine
727 A.2d 335 (1999)


Elden Guerrette obtained a life insurance policy from Sun Life Assurance Company of Canada (Sun Life) (defendant) and named his three children, Daniel, Joel, and Claire, as the beneficiaries. Elden passed away in September 1995. Sun Life then issued three checks, one to each of the children, each in the amount of $40,759.35. Sun Life’s agent, Steven Hall, and his associate, Paul Richard, then fraudulently induced each of the children to indorse the checks in blank and transfer them to Hall and Richard in order to invest in a corporation they had formed. Richard then deposited the checks at the Maine Family Federal Credit Union (Credit Union) (plaintiff) in October 1995. The Credit Union’s internal policy permitted the Credit Union to hold these checks for up to nine days. However, the Credit Union made the funds immediately available to Richard, who quickly withdrew the full amount. The following day, the Guerrettes requested that Sun Life stop payment on the checks. Sun Life then directed its bank to stop payment, and the checks were dishonored. The Credit Union sued Sun Life, alleging that Sun Life was obligated to honor the checks as negotiable instruments, because the Credit Union was a holder in due course of the checks. The trial court entered judgment in favor of Sun Life based on a jury verdict that the Credit Union had not acted in good faith. The Credit Union then appealed to the Supreme Judicial Court of Maine.

Rule of Law


Holding and Reasoning (Saufley, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 497,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 497,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,400 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial