Question: Larry J Goodwin and his wife maintained a checking and
Larry J. Goodwin and his wife maintained a checking and savings account at City National Bank of Fort Smith (Bank). Bank also had a customer named Larry K. Goodwin. Two loans of Larry K. Goodwin were in default. Bank mistakenly took money from Larry J. Goodwin’s checking account to pay the loans. At the end of the month, the Goodwins received written notice that four of their checks, which were written to merchants, had been dishonored for in-sufficient funds. When the Goodwins investigated, they discovered that their checking account balance was zero and that the bank had placed their savings account on hold. After being informed of the error, Bank promised to send letters of apology to the four merchants and to correct the error. Bank, however, subsequently “bounced” several other checks of the Goodwins. Eventually, Bank notified all the parties of its error. One month later, the Goodwins closed their accounts at Bank and were paid the correct balances due. They sued the bank for consequential and punitive damages for wrongful dishonor. Who wins? City National Bank of Fort Smith v. Goodwin, 301 Ark. 182, 783 S. W. 2d 335, 1990 Ark. Lexis 49 (Supreme Court of Arkansas)
Answer to relevant QuestionsCharles Ragusa & Son (Ragusa), a partnership consisting of Charles and Michael Ragusa, issued a check in the amount of $ 5,000, payable to Southern Masonry, Inc. (Southern). The check was drawn on Community State Bank ...Atlantic Ocean Kamp grounds, Inc. (Atlantic) borrowed $ 60,000 from Camden National Bank (Camden National) and executed a note and mortgage on property located in Camden, Maine, securing that amount. Maine permits strict ...Joseph H. Jones and others (debtors) borrowed money from Columbus Junction State Bank (Bank) and executed a security agreement in favor of Bank. Bank perfected its security interest by filing financing statements covering ...Donald Wayne Doyle (Debtor) obtained a guaranteed student loan to enroll in a school for training truck drivers. Due to his impending divorce, Debtor never attended the program. The first monthly installment of approximately ...Iota Management Corporation entered into a contract to purchase the Bel Air West Motor Hotel in the city of St. Louis from Boulevard Investment Company. The agreement contained the following warranty: “Seller has no actual ...
Post your question