National Infrastructure Development Co Ltd. v BNP Paribas [2016] EWHC 2508 (Comm) (26 September 2016)

National Infrastructure Development Co Ltd. v BNP Paribas [2016] EWHC 2508 (Comm) (26 September 2016)

A foreign injunction, even if exposing the paying bank to penalties, does not provide a defence to payment under a standby letter of credit governed by English law. The court must grant summary judgment unless a recognised English law defence applies, which is not the case here.

Citation
[2016] EWHC 2508 (Comm)
Parties
Claimant: National Infrastructure Development Co. Ltd.; Defendant: BNP Paribas
Jurisdiction
England and Wales
Judgment Date
26 September 2016
Procedural Posture
Commercial Court Summary Judgment Application / Summary Judgment Decision
Outcome
Summary judgment granted for the claimant.
Legal Topics
Standby Letters of Credit, Summary Judgment, Jurisdiction, Injunctions, Conflict of Laws
Banking and Finance International Trade Commercial Law Standby Letters of Credit Summary Judgment Jurisdiction Injunctions Conflict of Laws

Case Brief

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Parties

National Infrastructure Development Co. Ltd.

Claimant

BNP Paribas

Defendant

Procedural Posture

Commercial Court Summary Judgment Application / Summary Judgment Decision

Legal Issues

  1. 1 Whether a Brazilian injunction restraining payment under standby letters of credit provides a defence to payment under English law
  2. 2 Whether summary judgment should be granted to enforce payment under the letters of credit
  3. 3 Whether a stay of execution should be granted due to foreign injunction

Ratio Decidendi

A foreign injunction, even if exposing the paying bank to penalties, does not provide a defence to payment under a standby letter of credit governed by English law. The court must grant summary judgment unless a recognised English law defence applies, which is not the case here.

Court Disposition

Summary judgment granted for the claimant.

Orders

  • BNP Paribas to pay $58,786,765 to National Infrastructure Development Co. Ltd.
  • Application for stay of execution denied.