Court Opinion

ID: 9703237
Source: CourtListenerOpinion
Date Created: 2023-08-25 23:46:57.313089+00
Date Added: 2024-06-11T18:21:46.723056
License: Public Domain

HENDERSON, Justice
(concurring specially).
This case falls within the ambit of the Uniform Commercial Code. SDCL 57-13-13 (U.C.C. 3-406) bars recovery of appellant’s claim inasmuch as (1) the respondent paid the checks in good faith and (2) in accordance with the reasonable commercial standards that existed between these parties. While the practices in this case which facilitated the defalcation might well be viewed as ill-advised when compared to those banking practices that exist in other communities, I agree with the result. The function of the court under the U.C.C. is not to determine or delineate general standards of reasonableness in commercial transactions; rather, we are constrained to determine only whether the acts in question were reasonable in view of the course of prior conduct between the parties and the custom and usage within the particular community.