On October 17, 2006, JP Morgan withdrew control of the replacement due to insufficient funds in Direct Lending`s account. The return of The Replacement Check generated an overdraft of $88,006.00. This is a bank dispute over three cash cheques. The plaintiffs EA Management and William Elias (together Elias) are suing the defendant JP Morgan Chase Bank, N.A. (JP Morgan) and argue that JP Morgan improperly withheld the payment or debited three cash cheques, written on an account held by Elias. Elias made three claims against JP Morgan: On October 13, 2006, Elias The Replacement Check was deposited into a newly opened JP Morgan account and executed a business card. In the Business Signature Card Agreement, Elias confirmed JP Morgan`s deposit account contract. Shortly after Elias received the cash receipts, Shukeireh contacted JP Morgan and advised that the startup check-out and check number. 2253 by fraud. Shukeireh ordered a halt to payment for both cheques.
JP Morgan stopped paying on the 2253 check and the start-up check. As a result, Elias` account was debited $79,273.31. This amount is explained as follows: Here, Elias made deposits into his account with JP Morgan with funds that he knew he was not entitled to, and then attempted to inflate JP Morgan`s liability for non-compliance with cash checks used with contaminated products. In other words, it is judged unclean hands. To require JP Morgan to enforce cash cheques in the circumstances is contrary to the law and directive. On October 9, 2006, Direct Lending Scheck No. 2275 („The Replacement Check“) issued 100,005.00 $US to Elias. The replacement cheque was to cover the $100,000.00 owed to Elias, plus the $5.00 deposit fee for Elias of LaSalle Bank. In addition, on December 26, 2006, Elias attempted to withdraw $190,000 from his JP Morgan account, but the bank was unable to process this request at the time. In January 2007, JP Morgan Elias` account calculated an increase in overdraft fees of $25.00, bringing the overrun status to $79,298.31. This is the interest rate sheet for paid controls, savings accounts or CDs.
In response, Elias argues that JP Morgan has an obligation to properly manage cash cheques. Elias argues that, given the parties` „deposit relationship,“ the court should impose an obligation on JP Morgan to properly manage the accounts and to take cash cheques into account. In addition, Elias argues that JP Morgan`s application contains nothing, which shows that a bank does not owe an account holder an obligation to properly manage the accounts. On October 18, 2006, JP Morgan debited Direct Lending`s account and credited Elias` account to eliminate the overdraft and return Elias` account balance to US$12,005. For the month of November, there was no activity on Elias` account. Direct Lending is a mortgage lender operating in the subprime market. In 2005, Direct Lending abandoned Elias – the nature of his job is unclear. Until July 13, 2006, Guste Shukeireh (Shukeireh) was the sole shareholder of Direct Lending.