Banco Bilbao Vizcaya Argentaria v. Easy Luck Co. Inc.
208 So. 3d 1241
| Fla. Dist. Ct. App. | 2017Background
- Easy Luck (FL seller) received an $85,000 draft purportedly drawn on Lanco Manufacturing’s BBVA account; JAMS (Dominican buyer) arranged delivery and instructed excess be applied to its $77,000 delinquent debt to Easy Luck.
- Easy Luck deposited the draft with SunTrust (for collection) after BBVA’s Miami office would not verify the account; SunTrust credited Easy Luck on Feb 6, 2012; Easy Luck shipped shoes on Feb 27 after noting funds available and applying $41,663 to JAMS’s debt and $43,337 to the purchase.
- BBVA’s Dominican office had paid the draft on Jan 27, 2012, then discovered on Feb 7 it was a counterfeit/forgery and recredited Lanco’s account; BBVA notified SunTrust on Feb 9 but did not notify Easy Luck immediately.
- SunTrust refused to reverse the credit; BBVA sued Easy Luck in Florida to recover the $85,000 on June 14, 2012 (first notice to Easy Luck of the forgery).
- Trial court applied Fla. Stat. §§ 673.3031 and 673.4181 (UCC arts. 3 & 4) and ruled for Easy Luck; BBVA appealed.
Issues
| Issue | Plaintiff's Argument (BBVA) | Defendant's Argument (Easy Luck) | Held |
|---|---|---|---|
| Whether drawee (BBVA) can recover mistaken payment under §673.4181 | BBVA: May recover unless recipient proved exceptions; BBVA sought full recoupment of $85,000 | Easy Luck: Statute bars recovery for amounts taken in good faith for value or where recipient changed position in reliance | Court: BBVA cannot recover; Easy Luck protected under §673.4181(3) for both portions |
| Whether Easy Luck "changed position in reliance" for $43,337 (shipment) | BBVA: Conceded for shipment portion? | Easy Luck: Shipped in reliance once funds credited; thus changed position | Held: BBVA conceded and court found Easy Luck changed position; $43,337 not recoverable |
| Whether Easy Luck gave "value" for $41,663 applied to antecedent debt (bookkeeping) | BBVA: No real value—only a bookkeeping credit; should return entry | Easy Luck: UCC §673.3031(1)(c) treats an instrument taken in payment of an antecedent claim as value | Held: Applying UCC, crediting JAMS’s antecedent debt constitutes value; $41,663 not recoverable |
| Whether Easy Luck took the instrument in "good faith" | BBVA: Argued lack of good faith, pointing to limited verification and quick crediting | Easy Luck: Investigated by asking BBVA, resisted pressure to ship early, lacked actual knowledge of forgery until served suit | Held: Sufficient evidence of honesty and reasonable commercial standards; court found Easy Luck acted in good faith |
Key Cases Cited
- Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002) (defines UCC good-faith standard as honesty plus reasonable commercial standards)
- Turney v. Seale, 473 So. 2d 855 (La. Ct. App. 1985) (payment of instrument in satisfaction of antecedent claim constitutes value)
- Barbour v. Handlos Real Estate & Bldg. Corp., 393 N.W.2d 581 (Mich. Ct. App. 1986) (assignment accepted in full payment of prior loan constitutes payment of antecedent claim)
- S. Bank of Commerce v. Union Planters Nat. Bank, 289 S.W.3d 414 (Ark. 2008) (bank gave value by accepting check as payment of mortgage debt though no immediate mortgage action taken)