South Lanarkshire Council v Coface SA [2015] ScotCS CSOH_8 (27 January 2015)

South Lanarkshire Council v Coface SA [2015] ScotCS CSOH_8 (27 January 2015)

On a proper construction of the Bond, the Council was required to serve only one document specifying breach and cost to trigger liability; the terms 'call', 'notice in writing', 'claim', and 'written demand for payment' are synonymous.

Citation
[2015] ScotCS CSOH_8
Parties
Pursuer: South Lanarkshire Council; Defender: Coface SA
Jurisdiction
Scotland
Judgment Date
27 January 2015
Procedural Posture
Commercial Action / Opinion Following Argument on Liability
Outcome
By order hearing fixed to discuss further procedure in light of the opinion.
Legal Topics
Performance Guarantee Bond, Contractual Interpretation, Notice Requirements

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Parties

South Lanarkshire Council

Pursuer

Coface SA

Defender

Procedural Posture

Commercial Action / Opinion Following Argument on Liability

  1. 1 Proper construction of the performance guarantee Bond
  2. 2 Validity of notice served to trigger the Bond

Ratio Decidendi

On a proper construction of the Bond, the Council was required to serve only one document specifying breach and cost to trigger liability; the terms 'call', 'notice in writing', 'claim', and 'written demand for payment' are synonymous.

Court Disposition

By order hearing fixed to discuss further procedure in light of the opinion.