DCC 172/2010/2

This case involved a claim for the repayment of lost traveller's cheques against a bank. The key issue was whether the case was outside the statute of limitations. Traveller's cheques were a special form of cheque so not governed by the limitation rules on normal cheques. There was no specific UAE law on this area so the rules of the contract were relevant up to a maximum of 15 years.

Key Legal Questions in the Judgment:

1 Traveller's cheque definition.

2 The primary source in determining the legal system of a traveler's cheque is the contract between the parties.

3 The prescription of the buyer's claim against the bank that issued the lost traveller's cheque is subject to Article 473 of Federal Law No. 11/1992.

Background Facts:

On 11/3/1998, an Appellant purchased a series of travelers' cheques issued by the Respondent valued at 80000USD. These cheques were signed by the Appellant in the presence of the cashier of the bank.

On 12/3/1998, the Appellant travelled to Niger and carried the cheques with her. Shortly after, the Appellant discovered the travellers' cheques were lost, and the loss was immediately reported to the Respondent.