What is my liability if I mistakenly thought thatI had the right to cash a check and then a stop payment was placed on it?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
What is my liability if I mistakenly thought thatI had the right to cash a check and then a stop payment was placed on it?
I was involved in an auto accident; the other driver was at fault. The insurance company came to my house, looked at my car, and wrote me a check for the damages. The next day I cashed the check. However, a week later I got another check in the mail from the insurer which I thought was for medical, so I cashed it. Turns out it stopped payment on the second check which I didn’t know until 3 days after cashing it. Now the place where I cashed the check wants to me to pay back the money and the insurance company says it can press charges on me. What can I do and am I at fault in anyway?
Asked on September 28, 2010 under Criminal Law, Kentucky
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
1) If you've been overpaid, even inadvertantly (such as by cashing a check which had been stop-paid), you need to repay the money to whomever it belongs to. IF the insurer in fact stop paid the check, so that they only paid out on the 2nd check, but the check casher paid out on both checks, that would presumably be to the check casher. If the insurer did not stp the check in time and so paid on both, it would be the insurer who overpaid. Whomever did overpay is entitled to the money.
2) Criminal liabilty depends on a criminal mindset. If you accidently cashed a check that you thought was legitimate, that would not seem to lead to or support criminal charges--though if you refuse to repay money, knowing you are not entitled to it, that would be a different story.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.