Standard Chartered Bank v Dorchester LNG & Anor (Rev 1)

Standard Chartered Bank v Dorchester LNG & Anor (Rev 1)

SCB became the lawful holder of the bill of lading on 7th July 2010 when it paid Gunvor the face value of the letter of credit, resulting in an unconditional transfer and acceptance of the documents. This transfer was effected pursuant to the original letter of credit arrangement, satisfying section 2(2)(a) of the Carriage of Goods by Sea Act 1992, thereby vesting rights of suit under the contract of carriage in SCB.

Parties
Claimant/respondent: Standard Chartered Bank; Defendant/appellant: Dorchester LNG (2) Limited
Jurisdiction
England and Wales
Judgment Date
22 October 2014
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
Appeal dismissed
Legal Topics
Carriage of Goods by Sea Act 1992, Bills of Lading, Letters of Credit, Transfer of Rights of Suit, Misdelivery, Indorsement Completion
Commercial Law Shipping Law Banking Law Carriage of Goods by Sea Act 1992 Bills of Lading Letters of Credit Transfer of Rights of Suit Misdelivery +1 more

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 20 Party arguments 2 Amounts and remedies 1
Sign in to unlock

Parties

Standard Chartered Bank

Claimant/respondent

Dorchester LNG (2) Limited

Defendant/appellant

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Interpretation of section 5(2)(b) Carriage of Goods by Sea Act 1992 regarding completion of indorsement by delivery
  2. 2 Whether SCB obtained title to sue for misdelivery under the contract of carriage
  3. 3 Whether transfer of bill of lading constituted a transaction under section 2(2)(a) of the Act

Ratio Decidendi

SCB became the lawful holder of the bill of lading on 7th July 2010 when it paid Gunvor the face value of the letter of credit, resulting in an unconditional transfer and acceptance of the documents. This transfer was effected pursuant to the original letter of credit arrangement, satisfying section 2(2)(a) of the Carriage of Goods by Sea Act 1992, thereby vesting rights of suit under the contract of carriage in SCB.

Court Disposition

Appeal dismissed

Orders

  • SCB confirmed as lawful holder of bill of lading as of 7th July 2010
  • SCB entitled to rights of suit under contract of carriage