APPRAISAL OF BANK’S LIABILITY ON AUTOMATED TELLER MACHINE (ATM) DEBIT-WITHOUT-DISPENSING TRANSACTION UNDER NIGERIAN LAW: JWAN V. ECOBANK & ANOR. IN PERSPECTIVE

Abstract

Technological advancement has been adopted in the banking sector through the use of ATM and ATM cards issued by banks to ease saving and withdrawal of money by customers. Once a customer’s account is liquid, the insertion of an ATM card in an ATM and following the procedure, should lead to cash dispensation. However, there are instances where a customer’s account is debited but the money is not dispensed. This is an ATM debit-without-dispensing quagmire. Recently, the Nigerian Court of Appeal in Jwan v. Ecobank & Anor held that an ATM card is akin to a cheque, where it is inserted into an ATM by a customer whose account is funded, a debit-without-dispensing transaction equals to a dishonoured cheque which is breach of banker’s duty to the customer. This conclusion was reached based on the doctrine of res ipsa loquitur. This paper adopts doctrinal method in examining the propriety of making an ATM card akin to a cheque. It attenuates the nuances of the decision with particular reference to the ambit of banker’s duty of care. It seeks to evaluate whether the decision took cognisance of the vagaries of technological glitches in technology driven transaction like the ATM. It discusses the impact of the decision on Nigeria’s banker-customer jurisprudence. It makes vital recommendations as way-forward.