On The Compensation Case Of Liu Sues A&B State-owned Banks

Bank card business is convenient in reducing transaction costs, facilitatingfinancial consumers， while at the same time,The cases between consumers andbanks about the theft device installed in the ATM machine are on the rise.In thecompensation case of Liu sues A&B state-owned banks, how to determine the legalrelationship between Liu and the issuing bank,the paying bank,especially how todetermine the compensation body, becoming core of the case. Firstly, it’s the questionabout the qualitativity of the dispute between the plaintiff and the defendant. What thecardholder and the issuing bank signed was savings deposit contract, so the caseshould be characterized as a savings deposit contract dispute.Withdraw money fromATM related to the multi-party legal relationship.The relationship between thecardholder and the issuing bank is saving deposit contract. The relationship betweenthe issuing bank and the paying bank is principle agency.The relationship between thecardholder and the paying bank is requesting to initiate an electronic paymentinstruction. Secondly, it’s the question about whether the issuing bank should take theresponsibility of breaching contract.The answer is yes, because the relationshipbetween them is saving deposit contract, this is the basement of the responsibility.What’s more, the issuing bank meets all the requirements of taking theresponsibility.This case is fits for strict liability, that means, whether or not thereexesits fault, the issuing bank should take the responsibility. Lastly,it’s the questionabout whether the paying bank should take the joint responsibility together with theissuing bank.There’s no leagle basis about the joint responsibility no matter from theangent system in Civial Law or from the commission contract in Contract Law.In thepaying commission contracts,if the client suffers losses because of the fault of thetrustee,the client could ask for the compensation. So, according to the saving depositcontract, if the issuing bank (the client) is assumed for damages because of breachingthe contract,it could ask the paying bank(the trustee)for the loss according to thecontract between them.