The Twin City Bank V Isaacs

672 S.W.2d 651 (1984)

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Nature of the Case

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Facts

Ps discovered that their checkbook was missing. Ps reported the loss promptly. They later learned that two forged checks totaling $ 2,050 had been written on their account and honored by the bank on May 11 and 12. D decided to freeze the checking account which had approximately $2,500 before the forgeries occurred. When the hold order was instituted approximately $2,000 was in the account. P had been convicted of burglary, and the initial hold on the account was attributable to D's concern that Ps were somehow involved with the two forged checks. The party responsible for the forgeries was charged and convicted soon after the forgeries occurred. The police told D there was nothing to connect Ps with the person arrested. Two weeks later the police notified D a second time they could not connect Ps to the forgeries. D kept the account frozen on the advice of its attorneys. Ps were denied their funds for four years. P sued D for wrongful dishonor of their checks and wrongful withholding of their funds. Ps got $18,500 in compensatory damages and $45,000 in punitive damages. D appealed.