Management Information free essay sample

On September 17, the bank paid the check and charged it against Siegels account. F. Siegel discovered that the check had been paid and informed the bank that the check was postdated for November 14. G. Siegel demanded the funds be returned to his account and the bank refused. H. The bank refused to refund the $20,000 and Siegel sued for wrongful debit of his account. 3. Issue Is the bank required to refund Siegels money because the check was postdated for November 14? 4. Rule Commercial Code 542 (2d ed. 980). If the depositor were permitted to retain benefits, and recover the amount of the check as well, he would profit at the banks expense. Therefore, Section 4-407 provides that upon payment, the bank is subrogated to any rights prior holders may have had against the drawer-depositor, on either the check or the initial underlying transaction, and to any rights the drawer may have against the payee or other holders. We will write a custom essay sample on Management Information or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page G. L. c. 106, Section 4-407. 5. AnalysisThe Supreme Court held that:A. The check was a negotiable instrument. B. The Check was not payable until November 14. C. The bank was negligent in paying it before that date. D. The bank had no right to debit Siegels account. E. Siegel had not waived his rights or ratified the banks action and was not estopped from demanding the $20,000. F. The wrongful debit caused Siegel a loss of $20,000. 6. ConclusionThe Supreme Court held that New England Merchants National Bank wrongfully debited Siegels bank account.