Triffin v. Third Federal Savings Bank
New Jersey Superior Court
2008 WL 5233796 (2008)
After paying forged checks presented and cleared electronically through the Federal Reserve without ever receiving the original paper documents, Third Federal (defendant) discovered the forgery and returned electronic image copies stamped "returned unpaid," "other forgery," and noting the copy was in lieu of the original, reversing payment; Triffin (plaintiff), who had purchased the dishonored checks' rights, sued arguing the returned copies failed to meet statutory notice requirements, and the trial court ruled for Third Federal.
Whether a bank may provide notice of dishonor of a check by returning electronic-image copies of the checks with clear notations that the copies are in lieu of the original checks.