NCB wins summary judgment in merchant chargeback dispute

Chagod Tours’ claims over chargebacks and frozen bank accounts ended in summary judgment for National Commercial Bank on 17 April. The court also granted Chagod permission to appeal.

The tour company alleged contractual breaches, negligence and bad faith after disputed card transactions led to restrictions on its accounts. An earlier Court of Appeal ruling had interpreted contractual provisions permitting NCB to freeze the accounts when it deemed itself insecure.

The Supreme Court distinguished the tests for interim relief and summary judgment, but treated that appellate interpretation as decisive on the contract. It found no real prospect of success in the remaining pleaded complaints and no evidential basis requiring a trial. Negligence allegations could not circumvent the agreed commercial risk allocation. The court awarded NCB costs of the claim and application; it did not decide a general duty of good faith in Jamaican contracts.

Full judgment reviewed. This concerns this merchant agreement and record, not blanket immunity for banks. The outcome of any appeal was not checked.