At Furman Honick, we don’t just follow the law—we shape its future. On March 28, 2025, our firm secured a historic victory in the Maryland Supreme Court that’s already changing the legal landscape, not just in Maryland, but nationwide. Led by our partner, Allen Honick, we represented Badlia Brothers, LLC—doing business as Southwest Check Cashing—in a precedent-setting case against the State of Maryland. And we won.
This wasn’t just any case. This was a first-of-its-kind legal battle that tackled a question no court had ever answered before: Can a state claim sovereign immunity to avoid paying out on its own checks when they’re cashed by someone acting in good faith?
The answer from the highest court in Maryland? A resounding no.
The Case That Changed the Game
Badlia Brothers, a Baltimore-based check-cashing business, cashed 15 state-issued checks for customers, many of whom didn’t have traditional banking access. Unbeknownst to Badlia, these checks had already been paid out via mobile deposit or replaced after being reported lost or stolen. So when Badlia tried to present the checks for payment, the State refused, citing sovereign immunity as its shield.
Initially, the District Court sided with the State. But we appealed. The Circuit Court ruled in Badlia’s favor, recognizing the checks as valid contracts under Maryland law and determining that the State had waived its immunity for such claims. When the State challenged that ruling, the Maryland Supreme Court took up the case and that’s where Allen Honick and our legal team stepped in to make history.
A Groundbreaking Decision
Chief Justice Fader, writing for the majority, made it crystal clear: when the State of Maryland issues a check, it commits to honoring that check—not just for the original payee, but for anyone who legally and in good faith comes into possession of it.
That means check-cashing businesses, banks, vendors, landlords—anyone—can rely on the State to make good on its financial promises. The court confirmed what we knew all along: a check is a contract, and the State can’t hide behind sovereign immunity to walk away from its obligations.
Justice Watts dissented, suggesting a narrower interpretation of the statute, but the majority saw the bigger picture. They recognized the deep implications for Maryland’s financial system and for ordinary citizens who rely on state-issued checks to live, work, and support their families.
Why This Victory Matters—for Everyone
This ruling is a massive win for our client, Badlia Brothers. But the ripple effects go much further.
1. Sovereign Immunity Has Limits
For the first time, a court has said: the State can’t use sovereign immunity as a get-out-of-jail-free card when it comes to honoring its own checks. This challenges long-standing assumptions and opens new doors for businesses and individuals across the country who deal with state payments.
2. A Win for Small Businesses and the Underserved
Check-cashing businesses like Badlia serve a critical role, especially for Maryland’s unbanked and underbanked populations. According to the FDIC, 3.4% of households in Maryland don’t have a bank account, and 14.2% rely on alternative financial services. This ruling protects those who are often left behind by traditional financial systems.
3. Confidence in State-Issued Payments
Now, anyone receiving a check from the State—whether it’s a contractor, a refund recipient, or a commercial enterprise—can deposit it without fear of the State reneging on its commitment. That’s not just fair; it’s essential to keeping our economy moving.
4. National Implications
No other court had ever tackled this issue before. Now that Maryland has spoken, other states may be inspired (or forced) to reevaluate how their immunity laws apply to commercial transactions. We may very well see similar lawsuits or legislative reforms in jurisdictions across the country.
Allen Honick: The Advocate Behind the Win
This victory didn’t come easy. It required bold legal reasoning, tenacious advocacy, and a deep understanding of both commercial law and constitutional principles. Allen Honick led the charge, going head-to-head with a state government determined to protect its position.
Allen’s ability to break new legal ground is what sets Furman Honick apart. This wasn’t just a legal argument, it was a fight for fairness, commercial integrity, and justice for a local business that had done everything right. The State issued the checks. Badlia cashed them in good faith. And Allen made sure the law upheld that simple truth.
We Break New Ground—Because You Deserve It
At Furman Honick, we’re not afraid to challenge the status quo. We thrive in the gray areas of the law—the places others avoid because they’re too complex or untested. Whether it’s a contract dispute, government overreach, or a completely novel legal issue like this one, we’re ready to take it on.
Our clients trust us not just because we know the law, but because we push it forward. We ask the tough questions, we do the hard work, and we stand by you every step of the way.
The Badlia case proves that with the right legal team, you can take on the State—and win.
What This Means for You
If you’ve been wronged by a government agency, if you’ve received a payment that’s been dishonored, or if you’re navigating a legal issue no one’s seen before, we’re here to help. The law isn’t always clear, but our commitment to justice is.
Contact Furman Honick today to speak directly with the attorneys who are changing the rules—and making them work for you.