Western & Lake Check Cashers, LLC v. Propane Pete, LLC

Appeal arising from payments related to a check issued by the Defendant to one of its employees. The employee electronically deposited the check in his bank account and then subsequently went to the Plaintiff where he cashed the check. Plaintiff sought payment for the check from defendant’s bank, which refused and plaintiff filed a lawsuit seeking payment. The trial court found in favor of the plaintiff and defendant appealed. On appeal, the appellate court was tasked with determining whether the plaintiff was a holder in due course of the check and, if so, whether defendant’s obligation to pay the check was discharged under the Uniform Commercial Code with regard to negotiable instruments. The appellate court held that plaintiff was a holder in due course, that plaintiff was not subject to any discharge, and that plaintiff was not entitled to recover fees and costs from defendant. (McLAREN and HUTCHINSON, concurring)