Logourl black
From our private database of 14,200+ case briefs...

McGuire v. Bank One, Louisiana, N.A.

Louisiana Court of Appeal
744 So.2d 714 (1999)


Facts

Lottie McGuire (plaintiff) agreed to give $200,000 to Timothy Looney to purchase bonds on her behalf. McGuire requested that Bank One, Louisiana, N.A. (Bank One) (defendant) move funds from her investment account into her checking account. McGuire then gave Looney a check in the amount of $200,000. Although the check was dated August 26, 1996, McGuire told Looney that he was not permitted to cash the check until August 28, in order to ensure completion of the funds transfer prior to payment. Looney defied McGuire’s instructions and deposited the check immediately. Looney’s bank presented the check to Bank One for payment on August 27. Despite the fact that the funds transfer was not yet complete and that McGuire’s checking account had insufficient funds to cover the check, Bank One honored the check. The following day, Bank One sent a notice to McGuire, indicating an overdraft on her checking account of $188,198.79. Ultimately, Looney absconded with McGuire’s money and later pled guilty to fraud. McGuire brought suit against Bank One, seeking damages for Bank One’s failure to exercise ordinary care in honoring the check despite the significant overdraft. Bank One filed an exception for no cause of action, contending that its conduct was authorized under Uniform Commercial Code (UCC) § 4-401. The trial court found in Bank One’s favor and dismissed McGuire’s suit. McGuire appealed.

Rule of Law

Issue

Holding and Reasoning (Stewart, 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 97,000 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 251,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,200 briefs, keyed to 189 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.