Canty v. Vermont National Bank

25 U.C.C. Rep.Serv.2d 1184 (1994)

Facts

P had a checking account with D. P, and the IRS were in a dispute, and the IRS asked P for proof of payment by presenting canceled checks. P sent the checks to the IRS, who ever so faithful to the American taxpayer, redeposited the canceled checks. D actually paid them a second time. P sued D to recredit the account for the second cashing. D refused to recredit the checks because its rights were subrogated to the IRS. D defended claiming that P could not prevail if he suffered no actual loss from the improper payment. P motioned for summary judgment.