Member of Parliament for St Catherine Southern Fitz Jackson is hauling Scotiabank before the courts for a service charge he paid for the encashment of a cheque back in 2019.

Jackson on Tuesday submitted a claim against Scotiabank to the Commercial Division of the Supreme Court on Tuesday, July 19, 2022 “for failure to negotiate a negotiable instrument”, a document shared with the Jamaica Observer indicates.

Back in 2019, the Member of Parliament presented a cheque in the amount of $2,500 at the Scotiabank Portmore branch for encashment, but was informed that he would not be able to receive the cash unless he paid a fee of $385 or agreed to deducting the fee from the full amount on the cheque.

According to the claim presented by attorneys Usim, Williams and Company, Jackson “paid the said fee of $385 to the defendant’s bank, Portmore branch under protest, to encash the said cheque and was issued a receipt for the same amount and cash in the sum of Two Thousand One Hundred and Fifteen Dollars ($2,115.00)…contrary to the instructions stated on the said cheque by the drawer for the defendant bank”.

“The claimant has suffered loss, damage and incurred expense as a result of the defendant imposing a condition to encash said cheque and by so doing failed to honour a negotiable instrument on presentation of same to the defendant’s bank,” the claim form further stated.

The politician is, therefore, demanding that the bank issue a declaration that it has breached its fiduciary obligation by failing to honour the cheque as per the instructions on the instrument. In addition, he is claiming for the $385 he paid for the encashment fee as well as general damages and costs.

In the particulars of the claim, Usim, Williams and Company argues that the cheque was a negotiable instrument/bill of exchange which required that Scotiabank pay the amount indicated in full.

While the Bills of Exchange Act outlines the circumstances under which a bank can or cannot negotiate a cheque, there are no provisions made for the encashment of cheques subject to the payment of a service fee.