Legal fight over Gloria’s millions

A claim that banking giant Scotiabank Jamaica has failed to account for more than $3.5 million that was left in an account belonging to late restaurateur Gloria Harris Prawl has triggered a legal fight with one of her children.

Prawl, who died in 2001, was the proprietor of Gloria's Seafood, a popular chain of restaurants that had its genesis in Port Royal, Kingston.

At the centre of the squabble is a transaction, dated April 12, 2019, when $3,587,410.38 was transferred from Harris Prawl's Scotiabank account to the Accountant General's Department (AGD), according to a lawsuit filed by her daughter Tanya Prawl in the Supreme Court in September 2022.

The AGD is the arm of the finance ministry that has responsibility for the management of the Consolidated Fund.

The lawsuit sought repayment of the $3.5 million and damages for breach of contract, breach of statutory duty, and negligence “in that the defendant failed to secure monies” held to the credit of Harris Prawl.

“Notwithstanding repeated requests for payment and for the defendant [Scotiabank] to account for monies held to the credit of the deceased account, the defendant has neglected to provide any or any proper account regarding monies in its possession belonging to the estate of the deceased from October 7, 2021 up until the present time,” Tanya Prawl claimed in her lawsuit.

Tanya was named administrator of her mother's estate by a court order in February 2021, records show.

ROUND TWO PENDING

Scotiabank declined to comment for this report.

“As this matter is currently before the court, it would not be appropriate for us to comment at this time,” Danielle Savory, manager for public affairs and communication, said on Friday in an emailed response to questions submitted by The Sunday Gleaner last Wednesday.

The bank confirmed, in a subsequent court filing, that the $3.5 million “became a part of the revenues of Jamaica pursuant to Section 126 of the Banking Services Act” after it remained unclaimed for a year following publication in The Gleaner and the Jamaica Gazette.

Tanya Prawl won the first round of her legal fight with the banking giant when the Supreme Court granted her a default judgment in November 2022, declaring that Scotiabank failed to file a defence within the 42-day window stipulated by the court's civil procedure rules.

“The defendant, having failed to file a defence to the claim form and particular of claim, it is, this day, adjudged that the claimant [Tanya] do recover against the defendant damages to be assessed,” the court ordered.

No date has been set for the assessment of damages hearing.

But Tanya Prawl will now have to brace for round two after lawyers for Scotiabank filed an application in the Supreme Court that seeks to set aside the default judgment.

According to an affidavit filed by Maia Wilson, vice president, senior legal counsel and company secretary at Scotiabank, a defence to Tanya Prawl's lawsuit was filed in court on October 27, 2022.

Wilson asserted, citing advice from the bank's external attorneys, Livingston Alexander & Levy, that this was “exactly 42 days” from September 16, 2022 when Scotiabank acknowledged receipt of the lawsuit.

She said the attorneys advised that the countdown for the 42-day window began on September 15 when the court returned from the extended summer break and not on September 1 when Tanya Prawl's lawsuit was filed.

“I am further advised by the bank's attorneys-at-law and do verily believe that the default judgment was wrongly entered against the defendants and should be set aside as of right,” Wilson asserted.

Further, she indicated that the bank has a “good defence” to the lawsuit.

“We are disputing the default judgment and have already filed a defence,” the bank's public affairs and communications manager said in her emailed response to The Sunday Gleaner.

BECAME AWARE AFTER MOTHER'S DEATH

Tanya Prawl indicated in an affidavit accompanying her lawsuit that she became aware of the $3.5 million after her mother's death.

She said through her attorneys, Chen, Green & Company, a letter dated October 7, 2021 was sent to Scotiabank requesting information about monies being held in her mother's account.

According to her, the bank responded by letter three weeks later, indicating that the balance in the account was $769.69.

The letter, which was signed by a service and support officer at the bank, made no mention that the account was closed or that “funds were transferred to any other person or entity”, the lawsuit claimed.

After the initial “shock and surprise”, Tanya produced a copy of a statement of her mother's account covering the period January to April 2019. A copy of the statement was among documents filed in court.

“Two pages of that statement disclosed an entry referencing the transfer of an amount of $3,587,410.38 being transferred to the credit of the AGD on April 12, 2019,” Tanya Prawl said.

The AGD requested that she provide “documentary proof” of the transfer, the lawsuit said.

As a result, Tanya Prawl said her attorneys wrote to a manager at Scotiabank on July 22, 2022 requesting documentary proof of the $3.5 million transfer to the AGD.

But according to her affidavit, the manager replied four days later requesting time to complete an investigation before responding.

There has been no response to date, the lawsuit claims.

livern.barrett@gleanerjm.com