THE NATIONAL Commercial Bank (NCB) has won its appeal against a Court of Appeal ruling that it must pay $18 million to a retired businessman, of Montego Bay, St. James.
The businessman, Stephen Hew, died since the Court of Appeal's ruling in 2001, but the executors of his estate, Raymond and Clifton Hew, were named as respondents by the bank.
Hew had sued the bank for breach of fiduciary duty arising from a loan transaction in 1989.
The Supreme Court and the Court of Appeal ruled in Hew's favour.
The Court of Appeal, in dismissing the bank's appeal, had ruled that the bank was liable in negligence because it had given advice to Hew and had no duty to advise a customer as to the wisdom or viability of his projected use of borrowed funds..
In reversing the Court of Appeal's ruling, the Privy Council said that there was no evidence that Hew had ever received any advice from the bank or that the bank held itself out to members of the public that it would advise them in relation to their commercial affairs.
The bank which is being represented by attorney-at-law Dave Garcia, of the law firm Myers Fletcher and Gordon, had claimed $32 million from Hew arising from an overdraft facility with interest. The Privy Council, in ruling in favour of the bank, directed that judgment be given in favour of the bank. The Privy Council said the case must be remitted to the Supreme Court for a determination of the amount owing to the bank.
Mr. Hew borrowed $6.7 million from the bank in 1989. He used two properties totalling 140 acres in Ironshore, St. James, as security for the loans. The loans were to build houses at Barrett Town, St. James.
The overdraft exceeded $3 million in 1991 and the bank requested the money. In 1996 Mr. Hew received a demand letter from the bank for $32 million. He sued the bank seeking damages for negligence and breach of fiduciary duty. The bank, in turn, filed a suit against Mr. Hew to recover the $32 million.
