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Volume 14, Number 1 · January 2004

Brief Notes

New Law Speeds Up Check Processing
On October 28. 2003, a federal law known as "Check 21 "was signed by the-President. It allows banks to exchange digital images of checks, reducing processing costs, time and the potential for fraud. The good news is most checks will clear in a day or two.

But there is a caution. The "float" disappears since "Check 21 " sinks consumer's ability to write checks first and deposit money later. However, you have time, because the law becomes effective October 28,2004.

Child Support Due Despite Jailing
The Pennsylvania Supreme Court decided in June, 2003 that incarceration, alone, is not a sufficient reason to excuse payment of a child support order. This issue has plagued courts in every state.

Three different rules have been followed. Seven states hold jailing a complete excuse. Nine states treat incarceration as one of a number of factors. Pennsylvania joins fifteen other states in denying relief to the jailed parent.

The Court's rationale was to favor the interest of the child, even if support is delayed. The Court likewise was reluctant to allow a jailed parent to benefit from his own misdeed, an action akin to voluntary unemployment.

Statutes of Limitation Are Tricky
Pennsylvania has a special, tolling provision for minors with medical malpractice claims. The usual two-year limitation on suits is extended for minors until two years after a minor reaches majority (age 18).

But if the minor dies, suit must be filed within two years of the death (or discovery of negligence).

The Pennsylvania rule was followed in a recent case in Indiana. But in that state, the period of tolling (delay) is only the 8th birthday of the child who survives. The Court's rationale was that the law was intended to protect health care providers and not expand their liability.


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