ECOBANK v. INDIA NOVEMBER

ECOBANK v. INDIA NOVEMBER

ECOBANK, as the intermediary bank, is liable to reimburse INDIA NOVEMBER for the stolen travellers cheques because it failed to demonstrate that it transferred the funds to CITICORP, the issuing bank. Prompt opposition was made, and ECOBANK retained the funds beyond the statutory period, entitling INDIA NOVEMBER to reimbursement and interest for delay. Moral damages are not awarded in addition to interest for delay.

Citation
RLR V.1 - 2015
Parties
Appellant: ECOBANK SA (ex-BCDI); Respondent: INDIA NOVEMBER; Representative of Respondent: Isidore Ndabarasa
Court
Supreme Court
Jurisdiction
Rwanda
Judgment Date
10 June 2010
Case Number
RCOMA 0005/10/CS
Procedural Posture
Commercial Appeal / Final Judgment (supreme Court)
Outcome
appeal partially allowed; cross-appeal partially allowed; judgment modified
Legal Topics
Travellers Cheques, Bank Liability, Compensation for Delay, Damages, Interest Calculation
Source Language
rw
Commercial Law Banking Law Travellers Cheques Bank Liability Compensation for Delay Damages Interest Calculation

Case Brief

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Parties

ECOBANK SA (ex-BCDI)

Appellant

INDIA NOVEMBER

Respondent

Isidore Ndabarasa

Representative of Respondent

Procedural Posture

Commercial Appeal / Final Judgment (supreme Court)

Legal Issues

  1. 1 Which bank is liable to reimburse stolen travellers cheques: the issuing bank or the intermediary bank?
  2. 2 Is the intermediary bank liable for compensation and interest if it fails to reimburse within the statutory period after opposition notification?
  3. 3 Is the respondent entitled to both interest for delay and moral damages?

Ratio Decidendi

ECOBANK, as the intermediary bank, is liable to reimburse INDIA NOVEMBER for the stolen travellers cheques because it failed to demonstrate that it transferred the funds to CITICORP, the issuing bank. Prompt opposition was made, and ECOBANK retained the funds beyond the statutory period, entitling INDIA NOVEMBER to reimbursement and interest for delay. Moral damages are not awarded in addition to interest for delay.

Court Disposition

appeal partially allowed; cross-appeal partially allowed; judgment modified

Orders

  • ECOBANK to pay INDIA NOVEMBER 8,000 USD for stolen travellers cheques
  • ECOBANK to pay 11,165 USD as interest for delay