Shanning International Ltd v Lloyds TSB Bank Plc [1999] EWHC 280 (Comm) (17 December 1999)

Shanning International Ltd v Lloyds TSB Bank Plc [1999] EWHC 280 (Comm) (17 December 1999)

Regulation 3541/92 is validly adopted under Article 235 of the Treaty of Rome and must be construed as imposing a permanent prohibition on satisfaction of claims under the Lloyds Counter-Guarantee and the Shanning counter-indemnity, thereby precluding any liability of Shanning to Lloyds and of Lloyds to Rasheed in respect of the relevant guarantees.

Citation
[1999] EWHC 280 (Comm)
Parties
Claimant: Shanning; Defendant and Part 20 Claimant: Lloyds Bank; First Part 20 Defendant: Rasheed Bank
Jurisdiction
England and Wales
Judgment Date
17 December 1999
Procedural Posture
Civil (commercial/banking) / Judgment After Trial of Preliminary Issues
Outcome
Declarations granted in favour of Shanning and Lloyds; Regulation 3541/92 valid and permanently prohibits satisfaction of the relevant claims.
Legal Topics
Sanctions, Bank Guarantees, Counter Guarantees, Community Regulations, Treaty Interpretation, Validity of EU Acts
European Union Law Banking Law Contract Law Sanctions Bank Guarantees Counter Guarantees Community Regulations Treaty Interpretation +1 more

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Parties

Shanning

Claimant

Lloyds Bank

Defendant and Part 20 Claimant

Rasheed Bank

First Part 20 Defendant

Procedural Posture

Civil (commercial/banking) / Judgment After Trial of Preliminary Issues

Legal Issues

  1. 1 Whether Council Regulation (EEC) No. 3541/92 imposes a permanent prohibition on satisfaction of claims under guarantees and counter-indemnities affected by Iraq sanctions
  2. 2 Whether Regulation 3541/92 is validly adopted under Article 235 of the Treaty of Rome

Ratio Decidendi

Regulation 3541/92 is validly adopted under Article 235 of the Treaty of Rome and must be construed as imposing a permanent prohibition on satisfaction of claims under the Lloyds Counter-Guarantee and the Shanning counter-indemnity, thereby precluding any liability of Shanning to Lloyds and of Lloyds to Rasheed in respect of the relevant guarantees.

Court Disposition

Declarations granted in favour of Shanning and Lloyds; Regulation 3541/92 valid and permanently prohibits satisfaction of the relevant claims.

Orders

  • Court to hear parties on precise terms of relief and ancillary matters.