Firm sues over tapes
A foreign exchange company, forced to reimburse a customer after a dispute over a deal, is suing the telecommunications company which supplied a faulty recording system.
TSE Forex Investment Co paid $632,000 to have a 32-channel recording system installed by Nicom Telecom System in September 1995. The units were put in place to 'record the trading orders and instructions given by its customers', the writ filed in the Supreme Court said.
The recording system broke down 'three or five times a month. Some of the channels failed to record the tape conversations between TSE employees and its customers even though the whole recording system was shown to be in operation', the writ said.
In January last year, a customer complained but the company could not retrieve the relevant conversation from that trading day. TSE was obliged to pay the customer.
TSE is suing Nicom for $871,500 and an undisclosed amount for 'loss of business and goodwill'.