Yuchai Dongte Special Purpose Automobile Company Ltd v Suisse Credit Capital (2009) Ltd

Yuchai Dongte Special Purpose Automobile Company Ltd v Suisse Credit Capital (2009) Ltd

On the true construction of the contract, the Defendant was the issuer of the letter of credit; the terms did not clearly exclude issuer obligations; SBOL was nominated bank; discrepancies were waived by SBOL, binding the Defendant; no estoppel by convention was established.

Parties
Claimant: Yuchai Dongte Special Purpose Automobile Company Limited; Defendant: Suisse Credit Capital (2009) Limited
Jurisdiction
England and Wales
Judgment Date
09 October 2018
Procedural Posture
Commercial / Judgment
Outcome
Judgment for the Claimant
Legal Topics
Letters of Credit, Contract Interpretation, Estoppel by Convention, Uniform Customs and Practice for Documentary Credits (ucp 600)
Commercial Law Banking Law Letters of Credit Contract Interpretation Estoppel by Convention Uniform Customs and Practice for Documentary Credits (ucp 600)

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Parties

Yuchai Dongte Special Purpose Automobile Company Limited

Claimant

Suisse Credit Capital (2009) Limited

Defendant

Procedural Posture

Commercial / Judgment

Legal Issues

  1. 1 Was the Defendant the issuing bank under the letter of credit?
  2. 2 Did the terms of the letter of credit exclude the Defendant's liability as issuer?
  3. 3 Was there an estoppel by convention preventing the Claimant from asserting the Defendant was issuer?

Ratio Decidendi

On the true construction of the contract, the Defendant was the issuer of the letter of credit; the terms did not clearly exclude issuer obligations; SBOL was nominated bank; discrepancies were waived by SBOL, binding the Defendant; no estoppel by convention was established.

Court Disposition

Judgment for the Claimant

Orders

  • Defendant liable as issuer to pay under the letter of credit
  • SBOL's waiver of discrepancies binds Defendant