1. Andy Chen has two bank accounts at US Bank. One is his personal account under his name; the other is his business account in the name of Andy Chen, LLC. Andy received a check from Rasoul Akbari for the purchase of a car that Andy sold to Rasoul. The check was for $10,000 and Andy put it into the Andy Chen, LLC account because the car belonged to the business. A couple of days later Rasoul called Andy and told him that the check would not clear the bank because the money Rasoul expected to be there was not there, but told Andy to just re-deposit the check, and there would be no problem. Andy was not concerned about it since he and Rasoul were friends. The check from Rasoul did come back as “insufficient funds”, and Andy decided to wait a couple of days before depositing the check again.
The day after the check was returned by the bank Andy received notice that two check he had written on his personal accounts had not been paid due to insufficient funds in that account. One of the checks was a check to Mortgage Company and the other was a check for car repairs at a local shop. Andy went to the bank to see what the problem was because his records showed that he had about $11,000 in his personal account. What he discovered was that the bank had taken Rasoul’s insufficient funds check out of his personal account instead of the LLC’s account, where it had been deposited. Due to the bank’s error, his personal account had only about $1,000 in it. Due to the bank’s mistake, Andy has suffered some financial damages and wants to sue the bank for his losses.
Based on Chapter #4 only, what would be his cause of action against the bank? You must do a complete IRAC analysis and decide whether he would win or lose. One important fact is that both the mortgage check and the repair check were declined for payment, and that was communicated to Mortgage Co., and to the repair shop.
3. Mary Remington, an experienced golfer, decided to play golf very early one morning at Ridgeview Country Club. She didn’t think anyone else was around, so on the first tee she decided to tee off behind a slight hill, instead of the designated tee. Because of that decision, she could not see that another member, Sig Swenson was on the course. When she teed off, the ball hit Sig on the arm and he became angry, and started running toward the spot where the ball had come from. In his hurry, he did not see a rake that was left by one of the employees of the golf course, and stepped on it. The result was that he broke his leg due to that.
Swig wants to sue Mary for both the injury to his arm and to his leg. Could Mary be liable for both injuries? Why or why not? You must do a complete IRAC analysis using a legal issue from Chapter #4. Do NOT worry about the Golf Course’s liability. They are liable, but that is not to be a factor in your answer, because Mary could be jointly liable for the injury to the leg.