Jeff E. Messing vs Bank of America - Essay Example

The plaintiff Jeff E. Messing sued the Bank of America in court for refusal of a cash withdrawal over the counter through a check drawn on the bank because of the bank’s Thumbprint Signature Program for non-customers. Under the Thumbprint Signature Program, a bank requests non-customer presenters of checks over the counter to place an ‘‘inkless’’ thumbprint or fingerprint on the face of the check as part of the identification process.

ISSUE: Whether the Bank’s refusal to accept the check as presented constituted dishonor under § 3-501 and § 3-502 as the plaintiff contends.

DECISION: Yes, affirmed.

HOLDING: § 3-501b (2) and (3). (2)Upon demand of the person to whom presentment is made, the person making presentment must (1) exhibit the instrument, (2) give reasonable identification, and, if presentment is made on behalf of another person reasonable evidence of authority to do so, and (3) sign a receipt on the instrument for any payment made or surrender the instrument if full payment is made.

(3)Without dishonoring the instrument, the party to whom presentment is made may (1) return the instrument for lack of a necessary indorsement, or (2) refuse payment or acceptance for the failure of the presentment to comply with the terms of the instrument, an agreement of the parties or other applicable law or rule.

RATIONALE: The reduction of risk promotes the expansion of commercial practices, bringing to the conclusion the direction of § 1-102 (2) (b) that a bank’s requirement of a thumbprint placed upon a check presented over the counter by a non-customer is reasonable.