Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 13

Liccardi Ford Inc. (Liccardi) issued a check to an employee, Charles Stallone, but did not deliver the check to Stallone because he was suspected of embezzlement. The check disappeared from Liccardi's offices, and when that was discovered, Liccardi ordered payment stopped on it. JCNB Check Cashing Inc. (JCNB) cashed the check for Stallone before its issue date and deposited it in its own bank account. The issuing bank refused to honor the check. Two years later, Robert Triffin acquired the dishonored check from JCNB and sued Liccardi and Stallone for its amount. While Triffin could not have acquired the check as a holder in due course, since he knew of its dishonor, if JCNB was a holder in due course, Triffin could enforce JCNB's rights. Was JCNB a holder in due course? [Triffin v. Liccardi Ford Inc., 10 A.3d 227 (N.J. Super. Ct. App. Div.)]