Also known as: facts and amounts of loss · proof of loss
Written by attorneys · grounded in primary & secondary sources — see below
The existence of harm together with its quantifiable extent that a customer must prove when seeking recovery from a bank that paid an item over a valid stop-payment order.
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Fabian Flynn instructed his bank to stop payment on a $12,000 check to a contractor. The bank paid the check anyway. Flynn sued the bank. He introduced bank records and invoices showing the contractor had already been overpaid for defective work, establishing both that the payment caused him harm and the precise dollar amount of that harm.
Frostline Textiles placed a stop-payment order on a wire transfer to a supplier. The bank ignored the order and transferred the funds. Frostline introduced shipping records and resale invoices proving the supplier never delivered conforming goods, thereby establishing both the fact of loss and the exact amount recoverable from the bank.
The customer bears that burden under UCC § 4-403(c). The customer must show both that the unauthorized payment caused harm and the precise dollar amount of the resulting loss.
Supporting sources