The “Young Barristers” have filed a lawsuit against “Liberty Bank" in Tbilisi City Court demanding determination of violation of contractual relationship and removal of illegally charged fines.
According to co-founder and chief-executive of the “Young Barristers” – Archil Kaikatsishvili, it is important that the court renders a precedential judgment on the case, which will protect interests of many citizens in the future and banks will no longer be able to set unjust fines and penalties against them based on “software confirmation failure”. In precise, “Liberty Bank” violated credit contract and only at the end of contractual obligations, informed the other party that they owed 0.5 percent of total amount of money for each overdue day. The bank proved the penalty usage with the fact that money, which had been transferred on due date was only reflected in the software on the next day. Therefore, the bank which acts illegally against debtors violates the contract between parties.
According to the contract with “Liberty Bank”, “total amount of credit will be covered in accordance with the set schedule. Schedule hereby represents an integral part of mentioned contract” – Kaikatsishvili says. In addition to this, “Every amount paid will be counted as a fulfilled obligation, if amount which must be paid on monthly bases will be covered in accordance with specified time frame”. Therefore, there are no legal grounds why “Liberty Bank” must have rendered an illegal decision.
The “Young Barristers” addressed “Liberty Bank” with an official letter and requested to publish information concerning how many citizens faced similar issues due to “software confirmation failure”, however, the bank considered following information as a commercial secret.
“It is important for the citizens facing illegality to address courts in order to protect rights, since banks may themselves file a lawsuit and demand fulfillment of contractual obligations” – Kaikatsisvili says.
The “Young Barristers” address citizens and ask for a proper definition of contracts drafted with the bank. The organization has noticed that contracts with “Liberty Bank” conflict with the constitution, since, if consumers fail to prove their rights at court, they are deprived of rights to appeal in higher instances. Provisions like these infringes 42nd article of the constitution and protected rights to Fair Trial.
The “Young Barristers” addressed National Bank of Georgia concerning the above-mentioned issue, which responded with a letter dated April 29th 2014, indicating that the National Bank was not able to interfere into a contractual relationship of parties in a private sector. What is more, judicial analysis of legality of contracts was beyond of its scope of competence.
The “Young Barristers” are against dispute settlement with the “Liberty Bank” and note that a transformation of honesty into main corporate value represents a main legal interest, since banks violate human rights of Georgian citizens.
The “Young Barristers” address prime-minister of Georgia with an open letter and request to overview the state contract with the “Liberty Bank”, according to which the bank holds monopoly in the market by offering an exclusive service t IDPs and pensioners. However, the bank violates standards of such services and consumers have to receive state aid under sunny conditions. “A dominant condition of “Liberty Bank” represents an open monopoly, created with a support of former governing party” – Kaikatsishvili says. The bank may be representing interests of parliament minorities, since The Director General of the bank has been a minister of former government and one of the leaders of former governing party.
First hearing of the case will be held on May 21st 2014. The hearing will be held by Judge Eliso Tukvadze.
