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Commercial Law Keyed to Whaley
Kedzie & 103rd Currency Exchange, Inc. v. Hodge
Citation:
156 Ill. 2d 112, 619 N.E.2d 732 (1993)Facts
The Hodges hired a supposed plumber named Fred Fentress to install a “flood control system” at their home. Beulah Hodge signed a partial payment for the work for $500 from the couple’s joint account before work began. The parts for the system were never delivered to the Hodges’ home and Fentress failed to appear on the date set for installation. Eric Hodge called his bank to cancel the check but Fentress had nevertheless presented the check at the Currency Exchange and received payment. The Currency Exchange presented to the Hodges’ bank but was refused in accordance with the stop-payment order. The Currency Exchange sued Fentress and the Hodges to recover on the check. The Hodges argued that while the Currency Exchange was a holder in due course, the check was unenforceable because it was induced by an illegal transaction as Fentress was not a licensed plumber as required under Illinois law.
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