Trafigura Beheer BV v Kookmin Bank Co

Trafigura Beheer BV v Kookmin Bank Co

The English court has a legitimate interest in protecting its proceedings, the claims in Korea are fundamentally inconsistent with the meaning and effect of the L/C as determined by English law, and prosecution of the Korean claims would be vexatious and unjust. Trafigura is not liable to Kookmin Bank in connection with the letter of credit, discharge of cargo, or dealings with bills of lading, and an anti-suit injunction is granted restraining Kookmin from pursuing the Korean proceedings.

Parties
Claimant: Trafigura Beheer BV; Defendant: Kookmin Bank Co
Jurisdiction
England and Wales
Judgment Date
27 July 2006
Procedural Posture
Commercial Court Claim / Post Trial Application for Anti Suit Injunction
Outcome
Anti-suit injunction granted; declaration of non-liability issued.
Legal Topics
Anti Suit Injunctions, Letters of Credit, Conflict of Laws, Jurisdiction, Fraudulent Misrepresentation, Restitution, Tortious Liability
Commercial Law Private International Law Banking Law Anti Suit Injunctions Letters of Credit Conflict of Laws Jurisdiction Fraudulent Misrepresentation +2 more

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Parties

Trafigura Beheer BV

Claimant

Kookmin Bank Co

Defendant

Procedural Posture

Commercial Court Claim / Post Trial Application for Anti Suit Injunction

Legal Issues

  1. 1 Whether the English court should grant an anti-suit injunction restraining Kookmin Bank from pursuing proceedings in Korea
  2. 2 Whether Trafigura is liable to Kookmin Bank in connection with the presentation of a letter of indemnity under the letter of credit, discharge of cargo, and dealings with bills of lading
  3. 3 What law governs the claims between the parties, including tort and contract claims

Ratio Decidendi

The English court has a legitimate interest in protecting its proceedings, the claims in Korea are fundamentally inconsistent with the meaning and effect of the L/C as determined by English law, and prosecution of the Korean claims would be vexatious and unjust. Trafigura is not liable to Kookmin Bank in connection with the letter of credit, discharge of cargo, or dealings with bills of lading, and an anti-suit injunction is granted restraining Kookmin from pursuing the Korean proceedings.

Court Disposition

Anti-suit injunction granted; declaration of non-liability issued.

Orders

  • Kookmin Bank is restrained from pursuing the Korean proceedings against Trafigura Beheer BV or from introducing claims asserting liability in tort or contract arising out of Trafigura’s acts in exchanging the original bills of lading for new claused bills of lading and putting the new bills of lading into the...
  • Declaration: Trafigura Beheer BV is under no liability to Kookmin Bank Co in connection with (1) the presentation of a letter of indemnity under the Defendant’s irrevocable letter of credit M07PS311NS00160 issued in favour of the Claimant on 12 November 2003; (2) the discharge or delivery of the cargo of decant oil...