Assignment Problem: On July 1, 2022, JANE executed a check to SALLY in the sum of $1,500.00 in exchange for SALLY's television. There was nothing wrong with the television. It worked fine. SALLY immediately indorsed the check with a blank endorsement. However, SALLY immediately lost the check and asked JANE to give her another check. JANE refused. KATIE found SALLY's lost check, but rather than to return it to SALLY, on July 3, 2022, KATIE indorsed and negotiated the check to SUSIE as a gift. Next to KATIE's endorsement, KATIE added the words "Without Recourse" On July 5, 2022 , SUSIE presented the check to JANE's bank for payment. On July 6, 2022, the bank notified SUSIE that they would not honor the check and refused to pay it saying that JANE had told them not to pay because SALLY had lost the check and that SUSIE had no rights to it. SUSIE told KATIE and SALLY about JANE's refusal to pay on July 7, 2021.
SALLY also sues JANE and KATIE claiming she should get her $1,500.00 from one or both of them because she lost the check and was never reimbursed for it.
Question: SUSIE vs JANE (Payment of the Check) SUSIE now sues JANE for the $1,500 for payment of the check. Discuss any Defenses JANE could use to avoid having to pay SUSIE on the Check. What would SUSIE's responses (Defenses), if any, to JANE's Defenses? Who would prevail, SUSIE or JANE? Set forth the exact LAW(s) and definitions which apply to each Defense in discussing your answer.