The 2023 Florida Statutes (including Special Session C)

Title XXXIX
COMMERCIAL RELATIONS

Chapter 673
UNIFORM COMMERCIAL CODE: NEGOTIABLE INSTRUMENTS

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F.S. 673.3051

673.3051 Defenses and claims in recoupment.—

(1) Except as stated in subsection (2), the right to enforce the obligation of a party to pay an instrument is subject to:

(a) A defense of the obligor based on:

1. Infancy of the obligor to the extent it is a defense to a simple contract;

2. Duress, lack of legal capacity, or illegality of the transaction which, under other law, nullifies the obligation of the obligor;

3. Fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms; or

4. Discharge of the obligor in insolvency proceedings;

(b) A defense of the obligor stated in another section of this chapter or a defense of the obligor that would be available if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract; and

(c) A claim in recoupment of the obligor against the original payee of the instrument if the claim arose from the transaction that gave rise to the instrument; but the claim of the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at the time the action is brought.

(2) The right of a holder in due course to enforce the obligation of a party to pay the instrument is subject to defenses of the obligor stated in paragraph (1)(a), but is not subject to defenses of the obligor stated in paragraph (1)(b) or claims in recoupment stated in paragraph (1)(c) against a person other than the holder.

(3) Except as stated in subsection (4), in an action to enforce the obligation of a party to pay the instrument, the obligor may not assert against the person entitled to enforce the instrument a defense, claim in recoupment, or claim to the instrument (s. 673.3061) of another person, but the other person’s claim to the instrument may be asserted by the obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the instrument. An obligor is not obliged to pay the instrument if the person seeking enforcement of the instrument does not have rights of a holder in due course and the obligor proves that the instrument is a lost or stolen instrument.

(4) In an action to enforce the obligation of an accommodation party to pay an instrument, the accommodation party may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection (1) that the accommodated party could assert against the person entitled to enforce the instrument, except the defenses of discharge in insolvency proceedings, infancy, and lack of legal capacity.

History.—s. 2, ch. 92-82.

F.S. 673.3051 on Google Scholar

F.S. 673.3051 on Casetext

Amendments to 673.3051

Arrestable Offenses / Crimes under Fla. Stat. 673.3051

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 673.3051.

Annotations, Discussions, Cases:

Cases from cite.case.law:

HSBC BANK USA, NATIONAL ASSOCIATION, v. T. BUSET,, 241 So. 3d 882 (Fla. App. Ct. 2018)

. . . ." § 673.3051(3). . . .

IN RE ELOWITZ s, 550 B.R. 603 (Bankr. S.D. Fla. 2016)

. . . . § 673.3051(2): see also, Davis v. . . .

CARRILLO DEVELOPMENT, LLC, v. BAYVIEW LOAN SERVICING, LLC,, 193 So. 3d 4 (Fla. Dist. Ct. App. 2015)

. . . See § 673.3051, Fla. Stat. (2010); Bank of Miami v. Fla. . . .

BROIDE LLC, v. ALVAREZ, s LLC, a, 90 So. 3d 857 (Fla. Dist. Ct. App. 2012)

. . . .”); § 673.3051(l)(b), Fla. . . .

CITIBANK, N. A. v. DALESSIO, v., 756 F. Supp. 2d 1361 (M.D. Fla. 2010)

. . . 673.3061; and (6) without notice that any party has a defense or claim in recoupment described in section 673.3051 . . .

ANY KIND CHECKS CASHED, INC. a v. G. TALCOTT, Jr. GUARINO,, 830 So. 2d 160 (Fla. Dist. Ct. App. 2002)

. . . . § 673.3051(1) & (2), Fla. Stat. (2001). . . .

AMERICAN FIRST FEDERAL, INC. a v. LAKE FOREST PARK, INC. a B., 198 F.3d 1259 (11th Cir. 1999)

. . . . § 673.3051(2) (West 1993). . . . .

BARCLAYS BANK, P. L. C. v. CONKEY,, 695 So. 2d 931 (Fla. Dist. Ct. App. 1997)

. . . Without notice that any party has a defense or claim in recoupment described in s. 673.3051(1). § 673.3021 . . .

HOBLEY, v. METZ,, 630 So. 2d 625 (Fla. Dist. Ct. App. 1994)

. . . Without notice that any party has a defense or claim in recoupment described in § 673.3051(1). . . . .

HERITAGE REAL ESTATE DEVELOPMENT CO. INC. v. G. GAICH,, 620 So. 2d 1118 (Fla. Dist. Ct. App. 1993)

. . . Tropic Land Improvement Corp., 330 So.2d 482 (Fla. 4th DCA 1976); § 673.3051(1)(c), Fla. . . .