In an action for a dishonored draft, if a draft is accepted by a person or business, other than a bank, the obligation of the drawer to pay the draft if the draft is dishonored by the acceptor, is the same as the obligation of an indorser. The drawer of an unaccepted draft is only partially liable on the instrument. However, the drawee has no liability on the draft, but when the draft is accepted, the obligations change. That is, the drawee as the acceptor, becomes primarily liable, and the drawer's liability becomes secondary liability, as a person secondarily liable as a guarantor of payment. The drawer's liability becomes identical to that of an indorser. Accordingly, a drawer is liable to the pay the individual entitled to enforce the draft or any indorser that pays. Therefore, the drawer is discharged if a notice of dishonor is required and is not properly given. Additionally, a drawer that pays has a right of recourse against the acceptor.

Further, if a draft states that it is drawn "without recourse" or otherwise disclaims liability of the drawer to pay the draft, the drawer will not be held liable to pay the draft if the draft is not a check. However, if the draft is indeed a check, the disclaimer of liability will not be effective.

A West Palm Beach collections lawyer will advise a plaintiff that under Florida law, the drawer of a check may not avoid liability by drawing the check without recourse. The rationale for the statutory provision is that there is no legitimate purpose seved by issuing a check on which nobody is liable.

A cause of action for collecting a worthless check, draft or order of payment may have many complex issues. Therefore, you should consult with an experienced West Palm Beach collections lawyer. Call Sharmin & Sharmin P.A. at 1-800-74-TRIAL.