Session of 2000
         
SENATE BILL No. 589
         
By Committee on Judiciary
         
2-8
         

  9             AN  ACT concerning civil procedure; relating to worthless checks;
10             amending K.S.A. 60-2611 and K.S.A. 1999 Supp. 60-2610 and repeal-
11             ing the existing sections.
12      
13       Be it enacted by the Legislature of the State of Kansas:
14             Section  1. K.S.A. 1999 Supp. 60-2610 is hereby amended to read as
15       follows: 60-2610. (a) If a person gives a worthless check, as defined by
16       subsection (g), the person shall be liable to the holder of the check for
17       the amount of the check, the incurred court costs, the costs of restricted
18       mail and the service charge and the costs of collection, including but not
19       limited to reasonable attorney fees, plus an amount equal to the greater
20       of the following:
21             (1) Damages equal to three times the amount of the check but not
22       exceeding the amount of the check by more than $500; or
23             (2) $100.
24             The court may waive all or part of the attorney fees provided for by
25       this subsection, if the court finds that the damages and other amounts
26       awarded are sufficient to adequately compensate the holder of the check.
27       In the event the court waives all or part of the attorney fees, the court
28       shall make written findings of fact as to the specific reasons that the
29       amounts awarded are sufficient to adequately compensate the holder of
30       the check.
31             (b) The amounts specified by subsection (a) shall be recoverable in a
32       civil action brought by or on behalf of the holder of the check only if: (1)
33       Not less than 14 days before filing the civil action, the holder of the check
34       made written demand on the maker or drawer for payment of the amount
35       of the check, and the incurred service charge and the costs of restricted
36       mail; and (2) the maker or drawer failed to tender to the holder, prior to
37       the filing of the action, an amount not less than the amount demanded.
38       The written demand shall be sent by restricted mail, as defined by sub-
39       section (g), first-class mail to the person to be given notice at such per-
40       son's address as it appears on such check, draft or order or to the last
41       known address of the maker or drawer and shall include notice that, if
42       the money is not paid within 14 days, triple damages in addition to an
43       amount of money equal to the sum of the amount of the check, the


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  1       incurred court costs, service charge, costs of restricted mail and the costs
  2       of collection including but not limited to reasonable attorney fees unless
  3       the court otherwise orders, may be incurred by the maker or drawer of
  4       the check. Notice required by subsection (b)(1) shall state the exact
  5       amount and date due, as well as an estimate of the amount that may be
  6       incurred if the amount demanded is not paid by the specified date.
  7             (c) Subsequent to the filing of an action under this section but prior
  8       to the hearing of commencement of a dispositional hearing by the court,
  9       the defendant may tender to the plaintiff as satisfaction of the claim, an
10       amount of money equal to the sum of the amount of the check, the
11       incurred court costs, service charge, costs of restricted mail and the costs
12       of collection, including but not limited to reasonable attorney fees. The
13       plaintiff shall include in the petition a statement alleging the amount that
14       the defendant may tender as satisfaction of the claim as provided in this
15       subsection. If the amount alleged in the petition is tendered to the plaintiff
16       in full satisfaction of the debt prior to the commencement of the disposi-
17       tional hearing by the court, the case shall be dismissed by the plaintiff.
18       For purposes of this subsection only, the amount tendered as satisfaction
19       of the claim shall not include triple damages or damages of $100 as pro-
20       vided in subsections (a)(1) and (2). For purposes of this subsection, a
21       dispositional hearing means a trial or other hearing by the court in which
22       the plaintiff is seeking the entry of judgment against the defendant. The
23       court may waive all or part of the attorney fees provided for by this sub-
24       section, if the court finds that the damages and other amounts awarded
25       are sufficient to adequately compensate the holder of the check. In the
26       event the court waives all or part of the attorney fees, the court shall make
27       written findings of fact as to the specific reasons that the amounts awarded
28       are sufficient to adequately compensate the holder of the check.
29             (d) If the trier of fact determines that the failure of the defendant to
30       satisfy the dishonored check was due to economic hardship, the court
31       may waive all or part of the damages provided for by this section, but the
32       court shall render judgment against defendant for not less than the
33       amount of the dishonored check, the incurred court costs, service charge,
34       costs of restricted mail and the costs of collection, including but not lim-
35       ited to reasonable attorney fees, unless otherwise provided in this sub-
36       section. The court may waive all or part of the attorney fees provided for
37       by this subsection, if the court finds that the damages and other amounts
38       awarded are sufficient to adequately compensate the holder of the check.
39       In the event the court waives all or part of the attorney fees, the court
40       shall make written findings of fact as to the specific reasons that the
41       amounts awarded are sufficient to adequately compensate the holder of
42       the check.
43             (e) Any amount previously paid as restitution or reparations to the


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  1       holder of the check by its maker or drawer shall be credited against the
  2       amount for which the maker or drawer is liable under subsection (a).
  3             (f) Conviction of giving a worthless check or habitually giving a worth-
  4       less check, as defined by K.S.A. 21-3707 and 21-3708 and amendments
  5       thereto, shall not be a prerequisite or bar to recovery pursuant to this
  6       section.
  7             (g) As used in this section:
  8             (1) "Giving a worthless check" means the making, drawing, issuing
  9       or delivering or causing or directing the making, drawing, issuing or de-
10       livering of any check, order or draft on any bank, credit union, savings
11       and loan association or depository for the payment of money or its
12       equivalent:
13             (A) With intent to defraud or in payment for a preexisting debt; and
14             (B) which is dishonored by the drawee because the maker or drawer
15       had no deposits in or credits with the drawee or has not sufficient funds
16       in, or credits with, the drawee for the payment of such check, order or
17       draft in full upon its presentation.
18             (2) "Restricted mail" means mail which carries on its face the en-
19       dorsements "restricted mail" and "deliver to addressee only."
20             (3) "Service charge" means $10, or subject to limitations contained
21       in this subsection, if a larger amount is posted conspicuously, the larger
22       amount. In no event shall the amount of such insufficient check service
23       charge exceed $30.
24             Sec.  2. K.S.A. 60-2611 is hereby amended to read as follows: 60-
25       2611. In any civil action to enforce payment of or to collect upon a check,
26       order or draft on any bank, credit union, savings and loan association or
27       depository for the payment of money or its equivalent, payment upon
28       which such instrument has been refused because of insufficient funds or
29       no account, the party prevailing on such cause of action shall be awarded
30       reasonable attorney fees,. Such fees to shall be assessed by the court as
31       costs against the losing party. The fees shall not be allowed unless the
32       plaintiff offers proof during the trial of such action that prior to the filing
33       of the petition in the action demand for payment of the check, order or
34       draft had been made upon the defendant by registered first-class mail
35       not less than 14 days prior to the filing of such suit. 
36       Sec.  3. K.S.A. 60-2611 and K.S.A. 1999 Supp. 60-2610 are hereby
37       repealed.
38        Sec.  4. This act shall take effect and be in force from and after its
39       publication in the statute book.