My bank received a returned deposited item in the form of a cashier's check. The return reason for the cashier's check is unauthorized. It was returned timely. There is a note on the face of the check stating not negotiable after 6/30/02. It was negotiated 6/25/02. When we called the bank, they indicated that the check was duplicate and that the customer was notified not to negotiate it. We know that stop payments are not to be placed on these types of checks. Do I have any options for return back to drawer bank.

Can we assume you tried to charge it back to your customer first? That would have been my first thought, since if he knew the check had a problem, he would be correctly burdened with the charge-back.

Assuming he didn't have the money, then you may have a case in court against the issuing bank. You could demand payment from them as a holder in due course, since you gave value and qualified on all the other criteria for this position. Try that, by letter first, to see if that doesn't shake the bucks loose. If not, you'll probably have to weigh calling an attorney.

And I'd wonder long and hard about that "stale date" legend on the check. That and cashier's checks just don't mesh.