John wanted to buy a motorcycle to drive up and down the coast. He found one for sale on Craig’s List and bought it based on the seller’s statement that the motorcycle had never been in an accident. Just after he handed a check for the full price of the bike to the seller, John took the bike to an to an auto shop to get it checked out. The technician showed John evidence that the bike had been in a serious accident. John issued a stop payment on the check and called the seller wanting to return the motorcycle.
Upset with the situation with the motorcycle, John decided to rent a convertible and drive down the coast. John provided his bank with a written stop payment on his rent check because he needed that money to pay for convertible rental and for food and lodging during his trip. John’s bank mistakenly paid the rent check even though his stop payment had been timely.
What would happen if the motorcycle seller sued John demanding payment of the check for the motorcycle? What would happen if John sued his bank for paying over the stop payment he issued?