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Law Educator, Esq.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 91036
Experience:  JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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I made the stoppayment on check in amount of $16,500 issued

Resolved Question:

I made the stoppayment on check in amount of $16,500 issued by me.

The purpose of this check was a kind of promise or guarantee to pay back to the payee,
contributor, President of ABC Association who contributed the above amount to ABC Association in order the candidate for the next president to satisfy the requirement of $30,000 in the candidate register. This register money is to be used for the expense of the election and to returned to the President elected if there are remaining. Then, the elected is paying back the above amount to the contributor, subject to the receipt of the register money.

But there was not the actual election with only one candidate and most of the register money remained.

But, the problem came.
The president elected was very sick, sleeplessness, stomach ache, heart breaking and etc.
Therefore, the president elected, submitted the resignation. The Association accepted this.
then appointed the current President as a proxy, agent for the elected president.

The Proxy president received the register money, most of $30,000, on behalf of the elected.

I, resigned President, does not have the duty to pay his contribution money of $16,500 to the proxy, since he received the whole money.
Therefore, I made the stoppayment on my check.

But, the proxy is insisting on for me to pay for the stoppayment check and advising me to sue.

In this case, do I have any defense right here? Please advise me.

Best regards,

Yong Koh
Submitted: 1 year ago.
Category: Legal
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking.

The proxy is correct in that stopping payment on the check is not the way to solve this civil suit. The proper way to solve the suit would have been to sue him after you issued the check. Once you issue a check for payment that is a legal tender of funds and unless he agreed to the stop payment, you have executed self help in a civil dispute which is frowned upon by the law and you have issued a bad check, which is actually a felony (crime) punishable by up to 10 years in prison. Thus, the proxy is right, you pay the check and you sue for the breach of contract civil dispute you are alleging as your reason for wanting to stop payment.

If you do not want to give him the money directly, then you need to still file suit and you would file a motion when you file suit for permission of the court to put the money from the check in the registry of the court to hold the money until the court decides on your civil suit and this guarantees if you win you can get your money back instead of him spending it all so you cannot get it back.



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Customer: replied 1 year ago.


Dear Lawyer:


 


 


Thank you for your good legal advise.


 


In order for me to suit him, is it possible for me to do the suit after I received the suit from him.


 


Best regards,


 


Yong Koh

Customer: replied 1 year ago.
Relist: Other.
New Jersey Lawyer wanted to answer the question properly.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your response. I apologize for the delay, but we are working with multiple customers and sometimes we are online more than 12 hours a day and other days we have actual clients we have to assist. Please accept my apology.

You can sue him in a counter suit after he sues you, but you gain no advantage from that. In fact, he can go to the DA without suing you and file a criminal charge of issuing bad checks and you can be arrested for stopping the payment on the check. This is why you were told to make good on that check and then sue him, that is the proper legal process and the one that will keep you out of jail.
Law Educator, Esq., Attorney
Category: Legal
Satisfied Customers: 91036
Experience: JA Mentor -Attorney Labor/employment, corporate, sports law, admiralty/maritime and civil rights law
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