Judge sues bank for 'bounced cheque' mishap
16 April 2014, 14:12
Nairobi - A bank has been directed to respond to a case filed by a
Court of Appeal judge who is seeking compensation for an alleged ‘broke’
In the suit, Justice George B.M Kariuki wants the Standard
Chartered bank to compensate him for an embarrassment caused by being portrayed
as ‘broke’ after three cheques he had obtained from the bank failed to process
a Sh7M payment for a car he had purchased at D.T.Dobie.
Justice G.B.M Kariuki is seeking unspecified amount of
money as damages for breach of contract, loss of credit and reputation.
He says the bank caused him considerable amount of distress,
agony, mental torture, humiliation, and contempt in the eyes of the public.
On October 14 and November 1 last year, the judge who is a
customer at the bank and has a shilling and a dollar account from the said bank
claims that he purchased bankers cheques from the bank of Euros 12,822.49 and
Euros 44,142.62 respectively and transmitted them to D.T.Dobie who banked them
at Barclays bank.
However D.T.Dobie declined to release his chosen, purchased
motor vehicle on grounds that the cheques had been rejected.
“He was stunned when D.T.Dobie refused to release to him the
motor vehicle he thought he had purchased and paid for and instead informed him
that the two cheques had been dishonoured,” said his lawyer Mr Macharia
According to the judge, the cheque dated November 1, 2013 of
Euros 44,142.62 had the remarks “refer to drawer” while the other dated October
14, 2013 of Euros 12,822.49 was returned unpaid without any remarks by the
Standard Chartered bank’s branch in Frankfurt Germany.
Justice Kariuki notified one of the banks’ manager on what
had transpired and requested the third cheque of Euros 5,400 be cancelled and
the cash in it transmitted electronically to D.T. Dobie.
The bank manager had effected the cancellation to prevent
further embarrassment of the annoyed judge.
The judge alleges that the bank issued him with cheques not
drawn on its local Euro account which it could have done to prevent unwarranted
delay in payment and instead drew the said cheques on a foreign account which
were rejected after 21 days period.
He says his reputation as a distinguished citizen and
honorable member of the Kenyan Judicial bench has also been impaired.
Following the cheques rejection, he claims the bank has
caused him embarrassment, portrayed him as someone who is unable to manage his
finances and who cannot pay his bills as well as unable to perform his
part of the contract for the purchase of the car.
“As a judge of the Court of Appeal, reputation is
everything, and involves making sure that in your personal and professional
life integrity is paramount, financial integrity is of vital importance,” he
says in his plaint.
The deputy registrar directed the bank to respond to the
suit filed on April 8 in fifteen days.
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