Loucks v. Albuquerque National Bank
Supreme Court of New Mexico
418 P.2d 191 (1966)
The Bank (defendant) withdrew a partner's personal loan balance from a jointly-controlled partnership checking account, leaving insufficient funds and causing at least nine checks to be dishonored; despite being told the debt was personal to one partner and that the partnership account had outstanding checks, the Bank refused to re-credit the account, and the partnership L & M and its two partners (plaintiffs) sued for wrongful dishonor, presenting evidence some businesses stopped accepting L & M's checks or extending it credit. The trial court dismissed all claims except the $402 wrongfully withdrawn, and the plaintiffs appealed the dismissal of the rest.
Whether, under the Uniform Commercial Code, a customer can recover damages that are proximately caused by the wrongful dishonor of a check from a bank.