Opinion ID: 1607852
Heading Depth: 1
Heading Rank: 2

Heading: First Alabama Bank

Text: Dr. Sherrill claims the sum of $4,860.61 from First Alabama Bank for allegedly paying the check to Frank Morris Buick after a valid stop payment order had been given. The check was payable to the order of Frank Morris Buick in the amount of $4,860.61. It was dated 2/6/1976 and was not numbered. The oral stop payment order, later confirmed in writing, stated the check was payable to Walter Morris Buick dated 6/3/76, in the amount of $4,860.61. The issue is whether the notice described the check with sufficient specificity so as to constitute a valid stop payment order. The drawer of an uncertified check has the right to stop payment by giving reasonable notice to the drawee bank. If the bank then pays the check, it is liable at common law for the amount paid, based on the relation of debtor and creditor. Commercial Bank v. Hall, 266 Ala. 57, 94 So.2d 198 (1957). Under the UCC, a customer may stop payment on a check by giving an order which is received at such time and in such manner as to afford the bank a reasonable opportunity to act . . . § 7-4-403(1) (Code 1975). To be effective and bind the bank, the order must be explicit and describe the check with reasonable accuracy. J. Brady, Law of Bank Checks § 219 (1926); Michie on Banks and Banking ch. 9, § 194, at 518 (1973). Since the check in question is not numbered, there are only three elements involved in the description given in the stop payment order: amount, payee and date. The amount of the check, $4,860.61, was correctly given. The payee was mistakenly named as Walter Morris Buick. Dr. Sherrill testified that by dating the check 2/6/1976, he meant June 2, 1976 (apparently utilizing the European and military custom). Without deciding whether a reasonable person would so conclude, we note that the date stated in the stop payment order was June 3, not June 2. Thus, only one of the three descriptive elements was correctly stated. Cases involving stop payment orders usually involve the name of the payee, the amount, the date, and the check number, although any one element alone may not be controlling. It has been held as a matter of law that a notice to stop payment on a draft payable to James F. Manison is not sufficient when the draft as written was payable to James J. Manson. Western Union Telegraph Co. v. Louissell, 11 Ala. App. 563, 66 So. 839 (1914), cert. denied, 191 Ala. 665, 67 So. 1019 (1915). However, since only reasonable accuracy is required, a check payable to H. Orkand was held to be covered by a stop order naming the payee as Harold Orkand in Levine v. Bank of United States, 132 Misc. 130, 229 N.Y.S. 108 (New York City Mun.Ct.1928). A notice not to pay a draft which gave no date and stated the amount to be $15,000 when the actual amount was $17,000 was held insufficient in A. Sidney Davison Coal Co. v. National Park Bank, 201 App.Div. 309, 194 N.Y.S. 220 (1922). However, a notice giving the correct date, number, and payee while misstating the amount was held sufficient in Kentucky-Farmers Bank v. Staton, 314 Ky. 313, 235 S.W.2d 767 (1951); cf. Elsie Rodriguez Fashions, Inc. v. Chase Manhattan Bank, 23 UCC Rep. 133 (N.Y.Sup.1978) (only $.10 difference in amount). A notice giving the proper check number but misstating the date, payee and amount was held insufficient in Mitchell v. Security Bank, 85 Misc. 360, 147 N.Y.S. 470 (App.T.1914), but a single digit mistake in the check number alone was held not to prevent notice from being adequate in Thomas v. Marine Midland Tinkers National Bank, 86 Misc.2d 284, 381 N.Y.S.2d 797 (New York City Civ.Ct.1976). After consideration of the foregoing authorities and the circumstances in this case, we hold that the stop payment order did not describe the check to be stopped with sufficient accuracy so as to make First Alabama Bank liable for payment. Both the payee and the date were misstated, and there was no check number given. Nothing else was shown which would have given the bank knowledge that the check in question was the one to be stopped. We do not believe that the bank here was afforded a reasonable opportunity to act so that it should have found the check and stopped payment.