hello all of you,
My ex-employee told me he lost his final paycheck so I put a stop payment on it. It turns out he took it to a check cashing place where he cashed it. Now the check cashing place calls me quoting ''Holder in Due Course'' section 3-302A of the UCC stating I am liable for the check amount plus return fees. Please advice to whom i am liable to, my ex-employee or the check cashing place?
thanks for any reply.

Before it can become a holder in due course under 3-302, it must first be a holder. Also, before anyone can determine who owes what to whom, determine whether the check was lost or stolen and your employee's signature forged. Paying the check cashing company, you run a risk that your employee may also have a claim.