Supreme Court May Let Federal Judges Decide Interbank Check-Clearing Cases

By Seiberg, Jaret | American Banker, November 29, 1995 | Go to article overview

Supreme Court May Let Federal Judges Decide Interbank Check-Clearing Cases


Seiberg, Jaret, American Banker


The Supreme Court appeared poised Tuesday to give the federal courts jurisdiction over interbank check-clearing disputes.

The justices seemed to accept an argument by Bank One Chicago and the Justice Department that Congress intended for federal judges to resolve these conflicts.

The case began in 1994 when Bank One sued Chicago-based Midwest Bank and Trust, charging the bank listed the wrong reason for rejecting a check. The mistake led Bank One to cash the check, resulting in a $45,000 loss.

The federal appeals court in Chicago rejected Bank One's suit, saying Congress never intended for federal courts to decide these disputes. Rather, lawmakers, the court ruled, gave the Federal Reserve Board and the state courts responsibility for resolving check-clearing cases.

However, the justices now appear likely to overturn that decision. "The court seemed very sympathetic to the position of the government and Bank One," said Robert Ballen, a partner at Schwartz & Ballen, who watched the Supreme Court arguments. "A number of the questions seemed to relate to which statute to point to find federal jurisdiction, rather than whether there is federal jurisdiction."

In other action Tuesday, the Supreme Court sided with the banking industry in a bankruptcy case. The court held that lenders can prevent a bankrupt borrower who lied about his business plans from avoiding his bank debt.

There is a caveat. The lender must show a "justifiable" reliance on the borrower's deceitful statements. This is the second bankruptcy case to be decided by the high court in the banking industry's favor this year.

In the check-clearing dispute, most of the arguments focused on Congress's intentions. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Supreme Court May Let Federal Judges Decide Interbank Check-Clearing Cases
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.