Greenland Bank Ltd v American Express Bank Ltd

Greenland Bank Ltd v American Express Bank Ltd

There is a real prospect that Amex may be held liable under the performance bond in Bangladesh, justifying retention of the deposit pending final determination of liability; the bond's renewal provisions and the possibility of rectification support Amex's position.

Parties
Claimant: Greenland Bank Limited; Defendant: American Express Bank Limited
Jurisdiction
England and Wales
Judgment Date
06 March 2008
Procedural Posture
Civil / Judgment
Outcome
Claim dismissed; Amex entitled to retain deposit pending resolution in Bangladesh.
Legal Topics
Performance Bonds, Guarantees, Liquidation, Set Off, Foreign Judgments
Banking Law Contract Law International Law Performance Bonds Guarantees Liquidation Set Off Foreign Judgments

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Parties

Greenland Bank Limited

Claimant

American Express Bank Limited

Defendant

Procedural Posture

Civil / Judgment

Legal Issues

  1. 1 Whether Amex is entitled to retain the $1.5 million deposit pending resolution of liability under the performance bond
  2. 2 Whether there is a real prospect that Amex might be held liable under the Bond in Bangladesh
  3. 3 Whether Amex has a contingent liability under the Bond entitling it to retain the deposit

Ratio Decidendi

There is a real prospect that Amex may be held liable under the performance bond in Bangladesh, justifying retention of the deposit pending final determination of liability; the bond's renewal provisions and the possibility of rectification support Amex's position.

Court Disposition

Claim dismissed; Amex entitled to retain deposit pending resolution in Bangladesh.

Orders

  • Amex may retain the $1.5 million deposit until liability under the bond is finally determined by the Bangladesh courts.