Doosan Babcock Ltd & Anor v Comercializadora De Equipos Y Materiales Mabe Limitada

Doosan Babcock Ltd & Anor v Comercializadora De Equipos Y Materiales Mabe Limitada

The Claimant established a strong case that MABE's refusal to issue Taking-Over Certificates was a breach of contract and that MABE sought to benefit from its own breach by maintaining the performance guarantees. The court found it appropriate to grant interim relief restraining MABE from making a call on the guarantees until the issue is determined by arbitration or the guarantees expire.

Parties
Claimant: Doosan Babcock Limited; Defendant: Comercializadora de Equipos y Materiales Mabe Limitada
Jurisdiction
England and Wales
Judgment Date
24 October 2013
Procedural Posture
Commercial Dispute / Interim Injunction Application
Outcome
Interim injunction continued
Legal Topics
Performance Guarantees, Interim Injunctions, Breach of Contract, Good Faith, Arbitration Agreements
Contract Law Arbitration Commercial Law Performance Guarantees Interim Injunctions Breach of Contract Good Faith Arbitration Agreements

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Parties

Doosan Babcock Limited

Claimant

Comercializadora de Equipos y Materiales Mabe Limitada

Defendant

Procedural Posture

Commercial Dispute / Interim Injunction Application

Legal Issues

  1. 1 Whether MABE's refusal to issue Taking-Over Certificates was a breach of contract
  2. 2 Whether MABE acted in good faith in withholding the certificates
  3. 3 Whether the Claimant is entitled to interim relief restraining a call on performance guarantees

Ratio Decidendi

The Claimant established a strong case that MABE's refusal to issue Taking-Over Certificates was a breach of contract and that MABE sought to benefit from its own breach by maintaining the performance guarantees. The court found it appropriate to grant interim relief restraining MABE from making a call on the guarantees until the issue is determined by arbitration or the guarantees expire.

Court Disposition

Interim injunction continued

Orders

  • Injunction restraining MABE from making a call on performance guarantees continued until arbitrators determine the issue or further order.
  • Claimant to undertake to assist arbitral process within 24 hours.