Legal Question in Credit and Debt Law in Georgia

I wrote a check to a painter which was to cover some work and paint he was to purchase to paint my house. I placed a stop payment the next day as soon as the bank opened because the painter did not come to finish the work or deliver the supplies. I tried calling him and there was no answer.Later the # was disconnected. On the same day I placed a stop payment a check cashing place cshed his check. My bank did not honor the check because of stop payment.The check cashing place did not call me to verify the check was ok to cash as they did a week prior when I wrote a prior check to the painter. In the mean time I had no idea the check was cashed by a check cashing place because I had moved the house is vacant for sale. Now the check cashing place is suing me in GA civil court it was just filed. I found out through advertisiments being forwarded to me. Am I legally liable. I have not been served.


Asked on 10/11/12, 4:42 am

1 Answer from Attorneys
Rachel Hunter

I answered this question already, but now you have added new facts and now indicate that you have been sued. You are going to need a Georgia litigation attorney, one that handles consumer debts.

As I indicated, it appears that the check cashing place was a holder in due course. What that means is they took the check, for value (they cashed it), in good faith and without notice. If that is correct, then they can enforce it. As between you and the painter, you need to go after the painter.

Getting back to the check cashing place - this is a slim chance - you indicate that they called you once when you wrote the check to the painter? Is there anything that would suggest that they knew something that this was not a good situation? If you can show that they had notice or had a reason to lack good faith, then they would not be a holder in due course and you would be able to raise the issues about the painter not doing the job.

However, you can't do anything until you talk this over with a lawyer. You have 30 days to answer the complaint. I would get a lawyer to draft a proper answer for you and see if something cannot be worked out. I would also seek to drag in the painter into this lawsuit as he is the one who got the money and who should be liable to the check cashing place, not you.

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Answered on 10/11/12, 3:21 pm


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