Oct 2008 Financial News

NCB appeals Olint ruling

Oct 20, 2008

THE NATIONAL Commercial Bank (NCB) has filed an appeal against a Supreme Court ruling, which quashed its application last month to close the personal accounts of Olint's boss, David Smith, and his wife, Tracey.

NCB's application was based on a Supreme Court ruling in December last year, which upheld the cease-and-desist order which the Financial Services Commission had issued in 2006 against investment club Olint Corporation Limited.

NCB, in seeking to have the accounts closed, said it did not want to continue to operate accounts for persons who were associated with Olint based on the ruling by the Supreme Court.

Application denied

The Smiths, who were represented by attorneys-at-law Gordon Robinson and Georgia Gibson Henlin, opposed the application.

Justice Patrick Brooks heard legal arguments in chambers and ruled that he could not grant the application based on a Court of Appeal ruling in July.

The court had ruled that Olint's accounts with the bank must remain open until the Supreme Court heard the civil suit which Olint has filed against NCB.

NCB, which is being represented by Michael Hylton, QC, filed an appeal last Tuesday against Justice Brooks' ruling on the grounds that he ignored the settled common-law principles when he concluded there was a serious issue to be tried.

It states further that the judge said the serious issue was: "Can a bank in Jamaica in the 21st century, by merely giving reasonable notice, lawfully close an account that is not in debit, where there is no evidence of that account being operated in breach of the law?"

NCB is appealing the July ruling of the Court of Appeal, and the appeal is set for hearing on November 6 before the United Kingdom Privy Council.

Olint is appealing the cease-and-desist order. The Court of Appeal is to hear the appeal next month.


Source:
Barbara Gayle, Staff Reporter
The Jamaica Gleaner
Monday October 20, 2008
http://www.jamaica-gleaner.com/gleaner/20081020/business/business2.html