Banking Law: September 2014 Archives

Sixth Circuit Joins Majority in Rejecting Discovery Rule for UCC Check Conversion Claims

The United States Court of Appeals for the Sixth Circuit has joined with the majority of courts in rejecting application of the discovery rule for check conversion claims under the Uniform Commercial Code ("UCC"). In Pate v. Huntington Nat'l Bank, et al., 560 Fed.Appx. 506 (2014), the Sixth Circuit addressed the application of Ohio's general statutory discovery rule for the wrongful taking of personal property in the context of check conversion subject to UCC § 3-118(g). Ohio Rev. Code § 2305.09 provides that a cause for wrongful taking of personal property "shall not accrue until the wrongdoer is discovered." UCC § 3-118(g), on the other hand, provides that an action for conversion "must be commenced within three years after the cause of action accrues."

  • Super Lawyers
  • Best Lawyers | Best Law Firms | U.S.News & World Report | 2018
  • Preeminent AV | LexisNexis Martindale-Hubbell Peer Review Rated For Ethical Standards and Legal Ability