Patriot Bank v. Navy Federal Credit Union

Virginia Circuit Court

47 U.C.C. Rep. Serv. 2d 662, 2002 WL 481129 (2002)

Relevant factsFree

Peeso purchased a cashier's check from Navy Federal (defendant), indorsed it to Nation's Auto, which deposited it with Patriot Bank (plaintiff), added its own account number, and received credit; Navy refused payment claiming improper indorsement, and after Peeso asked Navy to stop payment (which Navy did), Navy issued Peeso a second cashier's check paid directly to Nation's Auto, which deposited it elsewhere, leaving Patriot unable to recover its now-overdrawn credit to the defunct Nation's Auto. Patriot sued Navy for wrongfully dishonoring the first check.

IssueFree

Whether a customer may stop payment on a certified (or cashier's) check.

Holding & reasoning

The court resolved the question by applying the controlling rule to the facts and explaining precisely why the outcome followed. Its reasoning ties the doctrine to the record so you can reproduce the analysis on an exam.

Procedural history, concurrence & dissent

This section traces the case from the trial court through appeal and lays out how each opinion lands. Separate writings sharpen the majority's limits and flag the arguments most likely to resurface in class.

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