National Bank protest against court
PANAMA. The Supreme Court Third Tribunal ordered the National Bank to pay compensation of $5. 3 million for damages to the construction...
PANAMA. The Supreme Court Third Tribunal ordered the National Bank to pay compensation of $5. 3 million for damages to the construction company, Constructora Urupan S. A. after the financial institution rescinded a contract to build two branches and renovate a third one in the Herrera province.
The original value of the works was $716,402.37, but after a prolonged legal battle that started in April 2001, the court ordered the National Bank to pay $7.1 million to Urupan after calculating its losses for seven years. The original claim for compensation was for $132,063.76. Eventually, after appealing the resolution that condemned the bank the award was reduced.
The board of directors of the National Bank feels that the court was unfair with it, because the contracts were cancelled due to excessive delays on the part of the construction company and it never presented its accounts books to calculate the compensation.