Bulgrains & Co Ltd v Shinhan Bank [2013] EWHC 2498 (QB) (24 July 2013)

Bulgrains & Co Ltd v Shinhan Bank [2013] EWHC 2498 (QB) (24 July 2013)

The defendant was entitled to reject the documents presented under the letter of credit due to material discrepancies in the beneficiary's name and goods description, and the notices of rejection were timely and compliant with UCP 600. This sufficed to dismiss the claim.

Citation
[2013] EWHC 2498
Parties
Claimant/respondent: Bulgrains & Co Limited; Defendant/appellant: Shinhan Bank
Jurisdiction
England and Wales
Judgment Date
24 July 2013
Procedural Posture
Commercial Claim (expedited Trial) / Final Judgment
Outcome
Claim dismissed
Legal Topics
Letters of Credit, Strict Compliance, Documentary Credits, UCP 600, Fraud Exception, Costs
Commercial Law Banking Law International Trade Letters of Credit Strict Compliance Documentary Credits UCP 600 Fraud Exception +1 more

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Parties

Bulgrains & Co Limited

Claimant/respondent

Shinhan Bank

Defendant/appellant

Procedural Posture

Commercial Claim (expedited Trial) / Final Judgment

Legal Issues

  1. 1 Whether the documents presented under the letter of credit were discrepant and justified rejection
  2. 2 Whether the defendant complied with UCP 600 Articles 14(b) and 16(c) in rejecting the documents
  3. 3 Whether the claimant had title to sue or had transferred rights to D Commerce Bank

Ratio Decidendi

The defendant was entitled to reject the documents presented under the letter of credit due to material discrepancies in the beneficiary's name and goods description, and the notices of rejection were timely and compliant with UCP 600. This sufficed to dismiss the claim.

Court Disposition

Claim dismissed

Orders

  • Claimant to pay defendant's costs limited to two-thirds, subject to set-off for prior interlocutory costs orders
  • Claimant to pay over US$825,000 plus interest to defendant's solicitors by 1pm next day