Florida Statute 673.3051 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 673
UNIFORM COMMERCIAL CODE: NEGOTIABLE INSTRUMENTS

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F.S. 673.3051

673.3051 Defenses and claims in recoupment.—

(1) Except as stated in subsection (2), the right to enforce the obligation of a party to pay an instrument is subject to:

(a) A defense of the obligor based on:

1. Infancy of the obligor to the extent it is a defense to a simple contract;

2. Duress, lack of legal capacity, or illegality of the transaction which, under other law, nullifies the obligation of the obligor;

3. Fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms; or

4. Discharge of the obligor in insolvency proceedings;

(b) A defense of the obligor stated in another section of this chapter or a defense of the obligor that would be available if the person entitled to enforce the instrument were enforcing a right to payment under a simple contract; and

(c) A claim in recoupment of the obligor against the original payee of the instrument if the claim arose from the transaction that gave rise to the instrument; but the claim of the obligor may be asserted against a transferee of the instrument only to reduce the amount owing on the instrument at the time the action is brought.

(2) The right of a holder in due course to enforce the obligation of a party to pay the instrument is subject to defenses of the obligor stated in paragraph (1)(a), but is not subject to defenses of the obligor stated in paragraph (1)(b) or claims in recoupment stated in paragraph (1)(c) against a person other than the holder.

(3) Except as stated in subsection (4), in an action to enforce the obligation of a party to pay the instrument, the obligor may not assert against the person entitled to enforce the instrument a defense, claim in recoupment, or claim to the instrument (s. 673.3061) of another person, but the other person’s claim to the instrument may be asserted by the obligor if the other person is joined in the action and personally asserts the claim against the person entitled to enforce the instrument. An obligor is not obliged to pay the instrument if the person seeking enforcement of the instrument does not have rights of a holder in due course and the obligor proves that the instrument is a lost or stolen instrument.

(4) In an action to enforce the obligation of an accommodation party to pay an instrument, the accommodation party may assert against the person entitled to enforce the instrument any defense or claim in recoupment under subsection (1) that the accommodated party could assert against the person entitled to enforce the instrument, except the defenses of discharge in insolvency proceedings, infancy, and lack of legal capacity.

History.—s. 2, ch. 92-82.

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Amendments to 673.3051

Arrestable Offenses / Crimes under Fla. Stat. 673.3051

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 673.3051.

Annotations, Discussions, Cases:

Cases Citing Statute 673.3051

Total Results: 11

GREGORY MIRMELLI v. HARVEY SILVERMAN, etc.

Court: District Court of Appeal of Florida | Date Filed: 2022-08-24

Snippet: instrument against a holder in due course.”); § 673.3051(2), Fla. Stat. (2017) (“The right of a holder

Aquasol Condo Assoc. v. HSBC Bank USA

Court: District Court of Appeal of Florida | Date Filed: 2018-10-31

Snippet: person entitled to enforce the instrument.” § 673.3051(3). Even then, ownership is not relevant

Aquasol Condo Assoc. v. HSBC Bank USA

Court: District Court of Appeal of Florida | Date Filed: 2018-08-15

Snippet: person entitled to enforce the instrument.” § 673.3051(3). Even then, ownership is not relevant

HSBC Bank USA v. Buset

Court: District Court of Appeal of Florida | Date Filed: 2018-02-07

Citation: 241 So. 3d 882

Snippet: person entitled to enforce the instrument.” § 673.3051(3). Even then, ownership is not relevant to standing

Carrillo Development, LLC v. Bayview Loan Servicing, LLC

Court: District Court of Appeal of Florida | Date Filed: 2015-12-23

Citation: 193 So. 3d 4, 2015 Fla. App. LEXIS 19222, 2015 WL 9315732

Snippet: section 673.3021(1), Florida Statutes (2010). See § 673.3051, Fla. Stat. (2010); Bank of Miami v. Fla. City

Cabrillo Development, LLC v. Bayview Loan Services, LLC

Court: District Court of Appeal of Florida | Date Filed: 2015-12-23

Snippet: section 673.3021(1), Florida Statutes (2010). See § 673.3051, Fla. Stat. (2010); Bank of Miami v. Fla. City

Broide v. Alvarez

Court: District Court of Appeal of Florida | Date Filed: 2012-05-30

Citation: 90 So. 3d 857, 2012 WL 1934415, 2012 Fla. App. LEXIS 8736

Snippet: instrument is issued without consideration.”); § 673.3051(l)(b), Fla. Stat. (2004) (“[T]he right to enforce

Any Kind Checks Cashed, Inc. v. Talcott

Court: District Court of Appeal of Florida | Date Filed: 2002-10-09

Citation: 830 So. 2d 160, 48 U.C.C. Rep. Serv. 2d (West) 800

Snippet: "recoupment" Talcott could raise against Guarino. § 673.3051(1) & (2), Fla. Stat. (2001). Because Talcott was

Barclays Bank, P.L.C. v. Conkey

Court: District Court of Appeal of Florida | Date Filed: 1997-06-27

Citation: 695 So. 2d 931, 35 U.C.C. Rep. Serv. 2d (West) 946, 1997 Fla. App. LEXIS 7245, 1997 WL 355187

Snippet: defense or claim in recoupment described in s. 673.3051(1). § 673.3021, Fla.Stat. (Supp.1992). In granting

Hobley v. Metz

Court: District Court of Appeal of Florida | Date Filed: 1994-01-04

Citation: 630 So. 2d 625, 1994 Fla. App. LEXIS 3, 1994 WL 1269

Snippet: defense or claim in recoupment described in § 673.3051(1). . Section 673.3081(2), Florida Statutes

Heritage Real Estate & Development Co. v. Gaich

Court: District Court of Appeal of Florida | Date Filed: 1993-07-02

Citation: 620 So. 2d 1118, 1993 Fla. App. LEXIS 7072, 1993 WL 242583

Snippet: Improvement Corp., 330 So.2d 482 (Fla. 4th DCA 1976); § 673.3051(1)(c), Fla. Stat. (1992 Supp.). In Atrio, the