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COA: Bank could charge back account after check is lost

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A man who withdrew nearly all of the money in a bank account is personally liable to pay back that money to the bank, the Indiana Court of Appeals ruled Thursday. The bank had lost a check deposited into the account and the account holder was unable to help the bank identify the check writer to obtain a replacement check.

James R. Sapp had multiple bank accounts with Flagstar Bank and other banks in and out of state. He deposited $125,000 in late August 2005 into his account referred to as SF7 that was the account of an LLC he had formed. The check was a cashier’s check made up of various amounts from other banks paid to some of Sapps’ businesses as well as some unidentified amount of cash. Almost all of the money was gone from the account 16 days after the deposit; Sapp had deposited $100,000 from the SF7 account into an account to which only he had access.

In November 2005, Flagstar debited $125,000 from the SF7 account and was only able to recover nearly $2,000. This was after the bank pressed Sapp to help it identify who issued the previous check in order to obtain a replacement. In 2007, the bank sued Sapp for breach of contract, theft, conversion and unjust enrichment. The trial court ruled in favor of the bank on its claims and ordered Sapp to pay attorney fees.

The transaction was not final, as Sapp had argued, because the account agreement states that the account holder agrees to be liable for any account shortage resulting from a charge or an overdraft. He chose to withdraw funds from the SF7 account while the provision credit was in place, the COA ruled in James R. Sapp v. Flagstar Bank, FSB, 49A02-1311-PL-935.

“Had Sapp not written any of those checks, the account would still have held the $125,000 provision credit and would not have been overdrawn when that credit was revoked,” Judge John Baker wrote in finding Sapp liable for the shortage in the account.

Sapp argued the bank waited too long to notify him the check had been lost and that the transaction had been “finalized” based on language in the account agreement. The agreement allowed Sapp to withdraw the funds based on the provision credit, but it also put him on notice that he would be liable for any checks deposited in the account that are unpaid.

The judges upheld the order that Sapp pay the bank’s attorney fees, again citing the account agreement. They also remanded for the trial court to decide the amount of appellate attorney fees to which Flagstar may be entitled.
 

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  1. Some are above the law in Indiana. Some lined up with Lodges have controlled power in the state since the 1920s when the Klan ruled Indiana. Consider the comments at this post and note the international h.q. in Indianapolis. http://www.theindianalawyer.com/human-trafficking-rising-in-indiana/PARAMS/article/42468. Brave journalists need to take this child torturing, above the law and antimarriage cult on just like The Globe courageously took on Cardinal Law. Are there any brave Hoosier journalists?

  2. I am nearing 66 years old..... I have no interest in contacting anyone. All I need to have is a nationality....a REAL Birthday...... the place U was born...... my soul will never be at peace. I have lived my life without identity.... if anyone can help me please contact me.

  3. This is the dissent discussed in the comment below. See comments on that story for an amazing discussion of likely judicial corruption of some kind, the rejection of the rule of law at the very least. http://www.theindianalawyer.com/justices-deny-transfer-to-child-custody-case/PARAMS/article/42774#comment

  4. That means much to me, thank you. My own communion, to which I came in my 30's from a protestant evangelical background, refuses to so affirm me, the Bishop's courtiers all saying, when it matters, that they defer to the state, and trust that the state would not be wrong as to me. (LIttle did I know that is the most common modernist catholic position on the state -- at least when the state acts consistent with the philosophy of the democrat party). I asked my RCC pastor to stand with me before the Examiners after they demanded that I disavow God's law on the record .... he refused, saying the Bishop would not allow it. I filed all of my file in the open in federal court so the Bishop's men could see what had been done ... they refused to look. (But the 7th Cir and federal judge Theresa Springmann gave me the honor of admission after so reading, even though ISC had denied me, rendering me a very rare bird). Such affirmation from a fellow believer as you have done here has been rare for me, and that dearth of solidarity, and the economic pain visited upon my wife and five children, have been the hardest part of the struggle. They did indeed banish me, for life, and so, in substance did the the Diocese, which treated me like a pariah, but thanks to this ezine ... and this is simply amazing to me .... because of this ezine I am not silenced. This ezine allowing us to speak to the corruption that the former chief "justice" left behind, yet embedded in his systems when he retired ... the openness to discuss that corruption (like that revealed in the recent whistleblowing dissent by courageous Justice David and fresh breath of air Chief Justice Rush,) is a great example of the First Amendment at work. I will not be silenced as long as this tree falling in the wood can be heard. The Hoosier Judiciary has deep seated problems, generational corruption, ideological corruption. Many cases demonstrate this. It must be spotlighted. The corrupted system has no hold on me now, none. I have survived their best shots. It is now my time to not be silent. To the Glory of God, and for the good of man's law. (It almost always works that way as to the true law, as I explained the bar examiners -- who refused to follow even their own statutory law and violated core organic law when banishing me for life -- actually revealing themselves to be lawless.)

  5. to answer your questions, you would still be practicing law and its very sad because we need lawyers like you to stand up for the little guy who have no voice. You probably were a threat to them and they didnt know how to handle the truth and did not want anyone to "rock the boat" so instead of allowing you to keep praticing they banished you, silenced you , the cowards that they are.

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