CopyCited 5 times | Published | Florida 5th District Court of Appeal | 30 U.C.C. Rep. Serv. (West) 1629
...Marine Midland Tinker's National Bank, 86 Misc.2d 284, 381 N.Y.S.2d 797 (Civ. Ct.N.Y. 1976). [5] Mitchell v. Republic Bank & Trust Co., 35 N.C. App. 101, 239 S.E.2d 867 (1978). [6] Supra notes 4, 5. [7] § 673.302(3), Fla. Stat. (1979). [8] § 673.303(1), Fla. Stat. (1979). [9] § 673.306, Fla. Stat. (1979). [10] § 674.407, Fla....
CopyCited 1 times | Published | Florida 1st District Court of Appeal | 1988 WL 31727
...yee's defenses against the endorsee. [9] "The claim of any third person to the instrument is not otherwise available as a defense to any party liable thereon unless the third party himself defends the action for such party." [10] Under UCC § 4-407 (section 674.407, Florida Statutes), a payor bank which pays an item over a stop-payment order of the drawer or maker or "under circumstances giving a basis for objection by the drawer or maker, to prevent unjust enrichment and only to the extent nece...
CopyPublished | Florida 4th District Court of Appeal | 53 U.C.C. Rep. Serv. 2d (West) 598, 2004 Fla. App. LEXIS 6617, 2004 WL 1057717
...Id.; §
674.403(3), Fla. Stat. (2000). The statute makes clear, however, that the drawee bank has the right of subrogation to prevent a windfall. “The drawee is, however, entitled to subrogation to prevent unjust enrichment.” U.C.C. § 4-403 cmt. 7 (2000). Under section
674.407: “If a payor bank has paid an item over the order of the drawer or maker to stop payment ......
...inst the drawer or maker either on the item or under the transaction out of which the item arose; and (3) Of the drawer or maker against the payee or any other holder of the item with respect to the transaction out of which the item arose.” [e.s.] §
674.407, Fla. Stat. (2000); see also E. PeteRS, A Negotiable InstRuments PRIMER 79 (1974) (“The trade-off for requiring banks to accept, stop orders under [§
674.403(1) ] was the limitation of their liability under [§
674.403(3) ] and §
674.407].”)....
...On this argument some cases have held that payment cannot be stopped against a holder in due course. Payment can be stopped, but if it is, the drawer or maker is liable and the sound rule is that the bank is subrogated to the rights of the holder in due course. The preamble and paragraph (1) of this section [§ 674.407] state this rule.” U.C.C....
... The parties also stipulated to a jury instruction stating “[Bank] is the subrogee of both [payee] and [drawer]. Subrogation is the substitution of one person in the place of another....” Drawer also agreed to the following jury instruction: “Section 674.407 is intended to prevent an unfair loss to a Bank by giving the Bank the right to step into the shoes of any party who is legally entitled to the money represented by the check.” The only legal issue to which drawer did not agree, and the only issue before the trial court on Bank’s motion for summary judgment and at trial, was whether Bank’s rights of subrogation under section 674.407 included the defense of release....
CopyPublished | District Court of Appeal of Florida | 1991 Fla. App. LEXIS 12680, 1991 WL 272646
...A subsequent order awarding attorney’s fees and costs to Southeast was entered from which Earle appealed. Upon motion by Earle, the appeals were consolidated by this court. Southeast argues that it is entitled to be subrogated to the rights of C & S pursuant to section 674.407, Florida Statutes (1989). Section 674.407 provides that the payor bank shall be subrogated to the rights of any holder in due course against the drawer or maker on the cashier’s checks. This would entitle Southeast rights of subrogation against itself. Therefore, section 674.407 is not applicable in this instance....
