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Triffin v. Atlantic City Showboat, Inc.

A-3171-02T3 (N.J. Super. App. Div. 2004) (Unpublished)

CHECKS—The validity of a signature on a check is presumed unless the maker provides sufficient evidence to challenge its validity.

An assignee of a dishonored check sued the maker of the check for its face amount plus interest and costs. At trial, the general manager of the assignor, a check cashing business, testified that she had assigned the right to payment of the check to the assignee, that she was unaware of any defenses to payment of the check, and that she was unaware that a stop payment order was issued with respect to the check because the check was allegedly lost or stolen. The lower court found that in order to prevail, the assignee had to prove that the check cashing business was a holder in due course under the Uniform Commercial Code and that the assignment had given the assignee the authority to collect from the maker of the check. It also found that, because the check cashing business’s manager could not demonstrate that she had positively identified the person presenting the check for payment as the payee of the check, the check cashing business acted in bad faith in paying the check. Therefore, the lower court found that the cash checking business was not a holder in due course. Thus, neither was the assignee.

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