Valley Bank v. Hughes

How courts have described this case

Verbatim parenthetical descriptions written by other courts when citing this decision. Ranked by citation-network relevance.

• holding that customer’s common law claims relating to bank’s processing of check, including bank’s exercising its chargeback rights, were preempted by UCC
• holding that, although bank had right to charge back provisional credit for counterfeit check, customer could “obtain a judgment to compensate him for the charge-back debt” when bank employees made misrepresentations regarding status of check
• U.C.C. standard of ordinary care governs “check processing” but not actions outside of check processing
• “[T]o the extent that Hughes’ common law claims relate to Valley Bank’s processing of the checks, they are preempted by the UCC.”
• U.C.C. standard of ordinary care governs “check processing” but not actions outside of check processing
• “[I]n certain circumstances, common law and equitable principles may supplement the UCC where the bank—though not violating its UCC-defined duty of ordinary care with respect to processing checks—breaches a duty to its depositor by misrepresenting the status of the check settlement process.”

Source: CourtListener parenthetical corpus (CC0).