QUESTION 2 John Myers, Attorney-at-Law is a sole practitioner of the law firm Myers & Associates.

John is a customer of Caribbean Royal Bank (the Bank) and operates three accounts with them:
1. A personal checking account that is overdrawn 2. A personal savings account in which he sometimes deposits client check. To date he has

deposited $2,000,000.00 personal funds and $5,000,000.00 client funds. The balance in the account is now at $4,000,000.00. 3. A client savings account in which he deposits client funds. There is a fourth account at the Bank in the name of Janelle Myers, Johns wife. Mrs. Myers opened the account but it is used solely by John. Checks in his name are lodged to the account and the standing orders attached to the account pays Johns motor vehicle loan, membership fees for professional associations and members clubs. John maintains a safety deposit box at the Bank in which he stores for safe keeping: 1. Share Certificates for the minor children of his cousin for whom he is an Executor under his will. 2. Three expensive carvings that he inherited from his grandfather. 3. Share Certificates for Five (5) Bluechip Companies in which he holds Shares In order to increase the limit of his overdraft facility and the period for repayment John delivered Four (4) expensive paintings from his personal collection to the Bank. For several years John has used funds from his client account to pay his mortgage, credit card bills, and office utilities bills as well as to invest in ponzi schemes. Arlene and Bill who are employed to the Bank and do most of Johns banking business have discussed the irregular payments among themselves but have never questioned John about it as he was well known, pleasant and had been the Banks Customer for several years. Arlene and Bill were recently summoned to court to testify about certain funds that were deposited to johns client account. Six months after the completion of a real estate sale John has not paid over the sale proceeds of $48,000,000 to the Vendors. While testifying Arlene and Bill testified about the personal payments that John made from his client account. After hearing their testimonies, Dylan an Attorney-at-Law who was in the court advised John that he would not be referring any more clients to him. John has vowed to sue the Bank for broadcasting his business.

After the Bank received the subpoena to appear in Court regarding John defrauding his clients, the Bank terminated Johns accounts with immediate effect because the clients have threatened to sue the Bank for the funds due to them. The Bank used the account in Johns wifes name to set off the overdraft facility. A significant amount of the overdraft remains unpaid and the bank wishes to recover this from the account with the $4,000,000, the items in the safety deposit box and the four paintings. Advise the parties of any rights that they have and any liabilities that they may face.

QUESTION 2 Martin Green holds two (2) accounts with West Indian International Bank Limited (the Bank): 1. A checking account which he uses primarily to pay his bills. 2. A savings account which at the time of opening the account he informed the bank was for the sole purpose of paying his brothers University tuition fees. Six months ago Martin discovered that his housemate Sydney had forged a series of checks on his checking account. Sydney however pleaded for leniency because he said that as an Investment Adviser he would never be licensed as a fit and proper person if he was convicted of such a crime. Upon Sydneys undertaking to repay the money in future, Martin said nothing to the Bank about the forged checks. He believed that Sydney was genuine when he apologized for breaching Martins trust by removing the check leaves from the check book that Martin left on the front seat of his car that he loaned to Sydney to do field visits while Sydneys car was being serviced. One month ago Martin received a bank statement which indicated that his checking account was overdrawn. He noticed that the statements had $200,000 instead of the $20,000 that he had reimbursed Sydney for utilities at their apartment. Although the statement had a clause that stated that the Bank could deem the balance correct if they did not receive written notification as to any discrepancies within ten (10) days, Martin did not notify the Bank because he concluded that they had made an error. In fact, martin had completed the check except for the amount in words and handed it to Sydney as he was on a rush. He had left a space between the zero and the comma and Sydney inserted another zero and wrote in the words two hundred thousand dollars ($200,000.00). Martin had approached the National Building Trust (NBT) for a loan to purchase a house. He asked the Bank to provide a credit reference to NBT. The Banks reference indicated that the

account was overdrawn and that within the last six (6) months two checks drawn on the account had been dishonored. The Bank did not indicate that one of the dishonored checks was postpaid and had been erroneously lodged and the other was undated. NBT found the reference unfavorable and refused Martins loan as they felt that he as not a good risk. Since martin failed to get a letter of Commitment from the NBT, the Vendors cancelled the sale which was $1, 500,000 below the valuation amount. Martin wrote a check to the Business College for the payment of his brothers tuition fees but the check was dishonored and his brother has been barred from classes. Martin was informed by the Bank that the money from the savings account was used to pay off the overdraft on his checking account. Martin wants to sue the Bank to prevent debits to his account by Sydney, to recover the sums that the bank paid to Sydney on the altered check, for the bad bank reference and the dishonoring of the check for Business College. Advise the parties of any rights that they may have and any liabilities that they may face.