Legal Question in Banking Law in New York

Our company issued a payroll check to an employee who claimed it to be lost (with a signed affidavit). A stop payment was placed on the check and a replacement check was subsequently issued (which he cashed). About a year after the original check was issued, the employee presented it to a check cashing store which, despite the obvious stale-dating and instructions: "void after 180 days," cashed the check anyway. The check cashing store's bank would not accept the check and so the store is attempting to collect the funds from us. My question is: Are we obligated to honor the check and then seek restitution from the employee, or is it the check cashing store's responsibility to go after the employee (especially since the store should have recognized that the instrument was stale-dated)? Thank you!

Asked on 6/15/11, 6:07 am

Locksley Wade Law Office of Locksley O. Wade

0 users found helpful

0 attorneys agreed

The debt is owed by the presenter of the check, the employee.

Answered on 6/15/11, 6:25 am

Keywords

Match Any Match All

Country

State

Area of Law