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2/10/2004

START DATE

END DATE

3/19/2009

First Atlantic Commerce Ltd. v Bank of Bermuda Limited

COURT:

LAW:

JUDGE(S):

CLAIMANT'S LAWYER:

DEFENDANT'S LAWYER:

The Court of Appeal for Bermuda

Commercial Law Banking Law

Hon. Justice Zacca President Hon. Justice Nazareth JA Hon. Justice Evans JA

Mr. Victor Lyon Q.C. with Mr. Nathaniel Turner

Ms. Barbara Dohmann Q.C. with Mr. Andrew Martin

FACTS OF THE CASE:

FAC offered a payment gateway service to the Bank for credit card transactions online. Dispute arose over $5.4 million in overdrafts due to fraudulent trading by some sub-merchants. Bank and FAC entered a Refinancing Agreement leading to litigation over the Bank's alleged negligence in vetting sub-merchants.

SUMMARY:

Whether the Refinancing Agreements barred FAC's claim for damages due to gross negligence by the Bank and whether FAC was entitled to recover its losses under these agreements.

OUTCOMES:

Court varied the lower court's order awarding FAC two-thirds of its costs of the proceedings.

RULED IN FAVOUR OF:

Plaintiff/Claimant (First Atlantic Commerce Ltd.)

PLAINTIFF/CLAIMANT

DEFENDANT:

DURATION (DAYS):

ISSUES:

RELEVANCE:

RULING:

RULING TYPE:

CASES CITED:

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First Atlantic Commerce Ltd. v Bank of Bermuda Limited

FAC offered a payment gateway service to the Bank for credit card transactions online. Dispute arose over $5.4 million in overdrafts due to fraudulent trading by some sub-merchants. Bank and FAC entered a Refinancing Agreement leading to litigation over the Bank's alleged negligence in vetting sub-merchants.

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