Oliver and Anor v Dubai Bank Kenya Ltd

Condition 3 of the standby letter of credit is not to be disregarded under the UCP, as it stipulates payment against presentation of specified documents, including a telex to be issued by the bank. The bank is not in breach of any obligation to issue the telex, as it has acted in good faith and has not received instructions to do so. The claimants’ interpretation of condition 3 is rejected, and the claims are dismissed.

Parties: Claimants: Phillip Thomas Oliver and anor; Defendant: Dubai Bank Kenya Ltd.
Jurisdiction: England and Wales
Judgment Date: 24 September 2007
Procedural Posture: Commercial Court Claim / Judgment After Expedited Trial
Outcome: Claims dismissed
Legal Topics: Standby Letters of Credit, Documentary Credits, Uniform Customs and Practice (ucp), Contract Interpretation

Banking Law Commercial Law Standby Letters of Credit Documentary Credits Uniform Customs and Practice (ucp) Contract Interpretation

Case Brief

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Parties

Phillip Thomas Oliver and anor

Claimants

Dubai Bank Kenya Ltd.

Defendant

Procedural Posture

Commercial Court Claim / Judgment After Expedited Trial

Legal Issues

1 Whether condition 3 of the standby letter of credit is to be disregarded under the UCP
2 Whether the bank is in breach of an obligation to issue a telex under the letter of credit

Ratio Decidendi

Court Disposition

Claims dismissed