Twin City Bank v. Isaacs

Kenneth and Vicki Isaacs (plaintiffs) had a checking account with Twin City Bank (Twin City) (defendant). The Isaacses reported to Twin City that their checkbook was missing. Subsequently, two forged checks were written on the Isaacses’ account. Concerned that the Isaacses were somehow involved with the forged checks, Twin City froze the Isaacses’ account, which contained a balance of approximately $2,000. The person responsible for the forged checks was quickly charged and convicted. However, Twin City refused to unfreeze the Isaacses’ account. Two of the Isaacses’ vehicles were repossessed, because the Isaacses did not have access to their funds. The Isaacses were unable to secure credit because of their account’s status and had to borrow funds from their friends and family. An earnest-money check that the Isaacses had written for a home they were planning to buy was dishonored. The financial strain caused substantial problems in the Isaacses’ marriage. The Isaacses filed suit against Twin City for the wrongful dishonor of their checks and the wrongful withholding of their funds. The Isaacses’ account remained frozen for approximately four years, during which time Twin City continued to charge the Isaacses’ account with service charges and overdraft fees on checks that had been written before the forgeries occurred but presented after the account was frozen. The jury awarded the Isaacses $18,500 in compensatory damages, including damages for mental suffering, loss of value of the repossessed vehicles, loss of credit, and loss of the bargain of a house. Twin City appealed the denial of its motion for a new trial.