Courts split on cashing of two-party checks

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted September 30, 2022 11:27 AM

Surveying the even split on a “somewhat regularly occurring legal issue” about two-party checks under the “supposedly uniform” Uniform Commercial Code, a federal judge in Florida considered “whether cashing a two-party check by one co-payee, without the knowledge, involvement, or endorsement of the other co-payee, discharges the party that issued the check from its liability on the check and any underlying contractual obligation.”VFS Leasing Co. leased some truck tractors to Time …

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