Legal Question in Credit and Debt Law in Virginia
My son paid a worker with a company check from his business in virginia. The worker took the check to a check cashing company in virginia and cashed the check, and received the money.
The worker ( not my son or the company) was notified 2 days later that the check had bounced and that he was to come in and make good on the check. The worker went back to the check cashing company and was given a copy of the bounced check (front and back) from the check cashing place. At this point we had not been notified by the bank or by the check cashing company that there was a problem.
The worker came back to the bookeeper at my son's company and explained that the check had bounced and that my son owed him the $$. Another check was given to the worker who then went and cashed it at the bank. (The worker has now collected from the check cashing company as well as my son's company).
My son is being sued from the check cashing company for the $$ they out paid to the WORKER.
The lawyer involved said that in Virginia, both parties are liable to the check cashing company.
My understanding is that the liable party is the person receiving the money, the worker.
Did the check cashing office have the legal authority to give a copy of the bounced check to the worker without notifying my son or the company that there was a problem.
Please advise best course of action. Thank you.
2 Answers from Attorneys
The bookkeeper of your son's company erred (in my opinion) in giving this
worker another check made out to him. The better course would have been
for the bookkeeper to contact the check cashing company and explain that
a replacement check would be sent out immediately and payable to them.
Now, however, since this imbroglio has development with the
worker receiving the proceeds from two cashed checks, he should
be summoned into company headquarters and required to
turn over the amount he received from one of the checks or face
appropriate consequences.
Correction: Line 5 should read this imbroglio has "developed" rather than
development.
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