The High Court has delivered a landmark ruling against FirstCaribbean International Bank, mandating the withdrawal of its claim against an elderly couple who guaranteed an EC $800,000 loan for their children’s business. The court found that the bank failed to ensure the couple fully understood the risks associated with the agreement. Justice highlighted that Alburn and Veronica Samuel were not advised to seek independent legal counsel before signing as guarantors for Tyrells A1 Building Centre in 2010. The judge emphasized that the parents’ relationship with their children established a “relationship of influence,” which should have prompted the bank to exercise greater caution. The court noted that FirstCaribbean provided no evidence that it adequately explained the agreement to the couple or encouraged them to obtain legal advice, rendering their guarantees invalid. While the ruling dismissed the bank’s claim against the parents, it upheld its right to recover approximately EC $3.8 million in loans from the business partnership itself. Additionally, other relatives, whose properties were used as collateral, were absolved of liability after the court determined that the bank altered the loan terms without their consent. These relatives were awarded roughly EC $96,000 in damages and EC $10,000 each for defamation due to incorrectly published auction notices. FirstCaribbean was also ordered to pay the Samuels EC $7,500 in legal costs, with an additional EC $166,000 awarded to other defendants.
Court blocks bank from collecting EC $800K from elderly couple who guaranteed their children’s business loan
