McIntyre v. Harris

In October 1996, Total Home, a company owned by Brian McIntyre (plaintiff), provided Sandra Bennett with a price quote for the repair of her roof. McIntyre told Bennett that she would need to write a $2,000 check to Total Home for the repair. Bennett wrote the check. McIntyre then wrote Bennett a check for $2,000, which he postdated October 28, explaining to Bennett that she could cash the check in the event that the roof work was not completed by that date. Thereafter, McIntyre deposited Bennett’s check into his business account at Twin Oaks Savings Bank (Bank) (defendant). The roof repair was not completed by October 28. Nonetheless, McIntyre directed the Bank to stop payment on the check to Bennett. Shortly thereafter, the Bank mistakenly disregarded McIntyre’s order and paid out the check. When McIntyre learned that the money had been withdrawn, he told the Bank’s executive vice president, Robert Harris (defendant), that the account would be overdrawn. As a result, McIntyre executed a written agreement with the Bank whereby the Bank would leave the $2,000 in his account as long as McIntyre paid the Bank the $2,000 sum plus interest by July 1. McIntyre never completed payment to the Bank. McIntyre later brought suit against the Bank and Harris, claiming that he had been improperly coerced into signing a promissory note after the Bank withdrew $2,000 from his account despite his valid stop-payment order. The Bank counterclaimed, seeking the $2,000 payment. The trial court ruled in favor of the Bank and Harris, finding that the Bank was properly subrogated to the rights of Bennett and was therefore entitled to recovery from McIntyre. McIntyre appealed.