Maryott v. First National Bank
Supreme Court of South Dakota
624 N.W.2d 96 (2001)
Ned Maryott (plaintiff), the owner of a cattle-dealing business, borrowed various loans from First National Bank of Eden (Bank) (defendant). In 1996, Maryott attempted unsuccessfully to collect payments from one of his customers. The Bank’s manager, Tim Hofer (defendant), and the Bank’s president, Peter Melhaff (defendant), learned of Maryott’s trouble collecting payment. Shortly thereafter, Hofer and Melhaff became aware of three sizable checks drawn on Maryott’s checking account, payable to Tri-County Livestock, Schaffer Cattle Company (Schaffer), and Central Livestock Company (Central). Based on their knowledge of Maryott’s payment-collection issues and the large checks processed from Maryott’s account, Hofer and Melhaff decided that the transactions were suspicious, and the Bank dishonored the checks. As a licensed cattle dealer, Maryott held an insurance bond. After learning of the dishonored checks, Schaffer and Central filed claims against Maryott’s bond. The bond was insufficient to cover the claims, and Maryott was forced to forfeit his livestock-dealing license and close his business. Maryott brought suit against Bank, Hofer, and Melhaff for wrongful dishonor of the checks. At trial, Schaffer and Central testified that they would not have filed claims against Maryott’s bond if the Bank had not dishonored the checks. The trial judge instructed the jury on the doctrine of proximate cause and defined emotional distress as including all highly unpleasant emotional or mental reactions. The jury awarded Maryott $450,000 for lost income and $150,000 for emotional distress. The trial court denied the Bank’s motion for judgment notwithstanding the verdict, and the Bank appealed.
Rule of Law
Holding and Reasoning (Gilbertson, J.)
Concurrence (Miller, C.J.)
What to do next…
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 725,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
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.Learn about our approachRead more about Quimbee
Here's why 725,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 45,700 briefs, keyed to 983 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.