Legal Question in Appeals and Writs in Vermont

Your question isn't about appeals or writs, so you may want to re-post it under banking law. Having said that....

Your argument that the bank should pay for its mistake is incorrect. The money was never rightfully yours, so you have no claim to it. The bank was entitled to take it back. But if the bank's error caused other losses for you (not just in fees charged by the bank, but also penalties, etc. that third parties charged you due to bounced checks and missed payments), it may have to cover those losses. Whether it does will depend on a number of factors. One is whether you realized there was money in your account that shouldn't have been there. If you didn't, the next question will be whether you should have.