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Seigel v. Merrill Lynch Case Analysis
Pages 2 (502 words)
Merrill Lynch accidentally paid checks amounting to $143,000 to various casinos in Atlanta City, New Jersey, in spite of instructions from their client, Seigel, to stop payment against these checks. The payments were made to these casinos for the losses suffered by Seigel on account of gambling…
As a matter of fact, Seigel was obliged to make these payments anyway. There was no reason for him to stop making these payments. It is also a fact that he had given instructions to Merrill Lynch to stop payment against the checks issued by him to the casinos against gambling chips. However, the court ruled that since Seigel had not suffered any actual loss and the checks were payments rightfully made in view of his gambling dues, Merrill Lynch could not be convicted for any wrong doing.
Prima facie, Merrill Lynch erred in not adhering to the instructions to stop payments against the checks. It was a mistake on the part of Merrill Lynch to pass the checks after having received instructions from their client, Seigel, to stop making payments against these checks. In fact, Merrill Lynch did stop payments against many checks issued to the casinos by Seigel. However, they did not fully adhere to instructions and cleared certain checks amounting to $143,000 issued by Seigel to these casinos.
The court's view that since Seigel abrogated his rights to these monies after losing them to the casinos, he could not seek legal reprieve even if Merrill Lynch had overlooked his instructions to stop payment against these checks appear proper and fair. ...
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