The Supreme Court on Tuesday overturned decisions by lower courts and ordered Shinwa Bank to repay 8 million yen to a customer who had money withdrawn from his account via an automated teller machine after his bankbook was stolen.
The No. 3 Petty Bench of the nation's top court ruled that the bank, based in Sasebo, Nagasaki Prefecture, did not clearly state that money could be withdrawn with bankbooks through its ATMs and was therefore at fault.
As with postal savings accounts, Shinwa Bank customers without a bank card can withdraw cash as long as they have their bankbook and PIN number.
The Fukuoka District Court and the Fukuoka High Court had rejected the compensation demand, saying the bank bore no responsibility.
In handing down the ruling, presiding Judge Toyozo Ueda said the customer, a resident of the city of Fukuoka, was unaware that the bank's ATMs worked that way. The judge noted that the bank did not have any internal rules or instructions to warn clients of this system.
"In order to prevent other parties from withdrawing a person's money, the bank was obliged to warn its customers that their bankbooks could be used at ATMs," the judge said.
The plaintiff's bankbook was taken from the glove compartment of his car, which was stolen in November 1999. A total of 8 million yen was withdrawn from his account through ATMs at two Shinwa Bank branches in Fukuoka.
His PIN number was the same as the license plates on his car.