Blake v. Woodford Bank & Trust Co.
Court of Appeals of Kentucky
555 S.W.2d 589 (1977)
Wayne Blake (plaintiff) deposited two checks drawn on an account at Woodford Bank and Trust Company (defendant); the first was dishonored, and both were re-presented together, arriving at Woodford by courier on December 24. Woodford discovered on December 26 that the checks were bad but did not return them until December 27, blaming holiday volume, a machine breakdown, and a missing bookkeeper. Blake sued Woodford for the full amount of both checks, arguing Woodford missed the UCC's midnight deadline for returning dishonored checks; the trial court ruled for Woodford, and Blake appealed.
Whether a payor bank may be excused under UCC § 4-108(2) from the midnight-deadline rule of UCC § 4-301(1) when the delay in returning a check is due to circumstances beyond the bank's control.