Archives: Shipbuilding

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Bank ordered to honour refund guarantees despite foreign court orders prohibiting payment

The Claimant Buyers brought proceedings against the Defendant Bank under refund guarantees issued by the Bank in support of two shipbuilding contracts between the Buyers and Sellers. Pursuant to the contracts, the Claimant had paid instalments on terms that they would be refunded if the contracts were cancelled. When the ships were not delivered on … Continue Reading

Court of Appeal finds that money paid by a bank under an on demand performance guarantee was not held on trust for the bank by the recipient

Reed Smith  (Charles Weller) recently acted for the successful Respondents in Wuhan Guoyu Logistics Group Co Ltd v Emporiki Bank of Greece SA [2013] EWCA Civ 1679. The Respondents were sellers under a shipbuilding contract. The Applicant was the buyers’ bank. When the buyers refused to pay an instalment due under the contract, the sellers … Continue Reading

Court of Appeal holds that a payment guarantee issued in respect of an instalment due under a shipbuilding contract was an “on-demand” bond

Reed Smith (Charlie Weller) has represented the successful Appellant in Wuhan Guoyu Logistics Group Co Ltd v Emporiki Bank of Greece SA [2012] EWCA Civ 1629. The Court of Appeal held that a payment guarantee issued by a bank in respect of an instalment due under a shipbuilding contract was in the nature of an … Continue Reading
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