Essex Construction Corporation v. Industrial Bank of Washington, Inc

Facts

On March 31, 1995, plaintiff, Essex Construction Corporation (the “plaintiff”), deposited into its account at the defendant, Industrial Bank of Washington (the “defendant”), a check from East Side Manor Cooperative Association (East Side). The check was drawn against East Side account at Signet Bank. At the time plaintiff deposited the check, defendant provisionally credited plaintiff’s account but provided written notice that all but $100 of the funds would not be available for withdraw until April 6, 1995. On April 6, Signet Bank informed the defendant that East Side stopped payment on the checks. The defendant put a hold on the money deposited on March 31, thus revoking the provisional credit given to the plaintiff. On April 7, defendant mailed notice of this to the plaintiff. In the meantime, on April 7, the plaintiff wrote two checks against the funds it thought were available in its account. The plaintiff did not receive the written notice of the stop payment on t he check until April 11.