Maryott v. First National Bank

Cattle dealer Ned Maryott (plaintiff) had trouble collecting a payment from a customer, and shortly afterward the manager and president of First National Bank of Eden (defendants) noticed several large checks drawn on Maryott's account and, viewing the transactions as suspicious, dishonored them. Two payees whose checks were dishonored then filed claims against Maryott's required dealer bond, which proved insufficient, forcing Maryott to forfeit his cattle-dealing license and close his business. The payees testified they would not have filed bond claims but for the dishonored checks. A jury, instructed on proximate cause and a broad definition of emotional distress, awarded Maryott $450,000 for lost income and $150,000 for emotional distress; the trial court denied the bank's motion to overturn the verdict, and the bank appealed.