Parr v. Security National Bank

Facts

On September 14, 1981, Parr wrote a check to Champlin Oil in the amount of $972.96 and mailed it. On September 15, 1981, Parr called the Bank and ordered payment stopped, giving the Bank her account number, the check number, the date, the payee and the check amount. Parr made a 50-cent error in identifying the amount of the check. Parr went to the Bank on September 16th or 17th and executed a written stop payment order dated for September 15, 1981. The written stop order also included the wrong check amount. On September 17, 1981, the Bank paid out the check Parr sent to Champlin Oil. Parr sued the Bank to recover the amount of the check and the Bank argued that its computers were programmed only to stop a check if the exact check amount was reported. The Bank also argued that whether a bank had received a stop order in such a manner that gave it reasonable opportunity to act under UCC §4-403 should be determined after examining how the defendant bank handles stop orders.