Ward v. Federal Kemper Insurance Company
Court of Special Appeals of Maryland
489 A.2d 91 (1985)
Relevant factsFree
After overpaying Ward (plaintiff) a $12 premium refund by check (rather than the correct $4.50), Federal Kemper (defendant) billed him for the $7.50 difference when he never negotiated the original check; when Ward failed to pay that billed amount, Federal Kemper canceled his policy, and he was later denied coverage for an accident that occurred while the policy was purportedly canceled. Ward sued for a declaratory judgment on coverage; the trial court ruled for Federal Kemper, and Ward appealed.
IssueFree
Whether a drawee on a check or draft is liable on the instrument if the drawee does not accept the instrument.