Legal Question in Credit and Debt Law in California
Hired someone to install a security system and alarm. He was paid for the security system in full. He installed the alarm system and I wrote him a check. As soon as he left I tested the system and it did not work. I contacted him and his team the next day (Sun) to inform them that the system did not work. They never responded. On Monday I notified him to not cash the check - the system did not work and come remove the system. I contacted him again and told him I am canx the check come get your equipment. There were text messages sent to me in error that acknowledged the fact that he received my message about the check being canx (Stop paid). He returned to my house on Tuesday gathered his equipment and never mentioned the check. I get a call today from a check cashing place asking me why I stopped payment on the check. They went on to say that I was responsible for paying them for the check that he cashed. They never called me to verify this check. If they contacted my bank my bank should have told them that the check was stop paid. This man fraudulently cashed the check and took the equipment. Who is responsible for paying the check cashing place back? Thank you
1 Answer from Attorneys
The answer turns entirely on when he cashed the check. The rule is based on who was last wronged. If he wronged you by failing to install a working system, but believed he was cashing a good check, he did no wrong to the check cashing place. If he wronged you by the bad work AND wronged the check place by passing a check he knew was no longer good, the last wronged party is the check cashing place. So, if he cashed it without notice that you had put a stop payment on it, then you are liable to the check cashing company and have to go after the alarm guy for your money. If he cashed it with knowledge that it was subject to a stop payment, then he is responsible to the check cashing place.
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