Opinion ID: 2376224
Heading Depth: 1
Heading Rank: 2

Heading: The Guaranty Federal Case

Text: Alan Parmet opened an account at Guaranty Federal Savings and Loan Association (Guaranty Federal). [2] Later that day he used his new account to purchase a teller's check, referred to as an official check by Guaranty Federal, for $900,000. The payee on the check was designated as Binnon & Co. Guaranty Federal drew the teller's check on its account at Citibank of New York. On the same day, Parmet cashed the check for gambling chips at Binion's Horseshoe Casino in Las Vegas. [3] The next morning, Parmet was at Guaranty Federal when it opened, seeking to stop payment on the teller's check. Guaranty Federal immediately called Citibank to request that payment be stopped on Guaranty Federal's check. Thus, when the casino credit manager called the Citibank number listed on the teller's check, he was told that payment had been stopped. Undaunted, the casino attempted to negotiate the check. The check was endorsed Binnon & Co. Jack B. Binion. Pay to the order of the Horseshoe Club Operating Co.; below that, it was further restrictively endorsed Pay to the Order of Valley Bank of Nevada Main Office For Deposit Only The Horseshoe Club Operating Co. Hotel General Account 2100322. The Horseshoe Operating Company (Horseshoe) brought suit on the check, not against Parmet and his alleged co-conspirators [4] , or against Citibank, but against Guaranty Federal. Guaranty Federal brought a third party claim against Parmet and his alleged co-conspirators. The trial court severed Horseshoe's action on the check against Guaranty Federal from Guaranty Federal's third party action.