DCW maintains a list of recently-decided court cases involving commercial letters of credit, demand guarantees, and other trade finance instruments.
We’re excited to announce an exclusive new benefit for DCW subscribers—select IIBLP eBooks are now included as part
Important login update We’ve heard from a few users about login issues, so here’s a quick guide to
The Canadian Supreme Court affirmed Quebec appellate and trial courts, upholding permanent injunction restraining Counter-Guarantor against payment of demand by Counter-Guarantee Beneficiary.
![Eurobank Ergasias S.A. v. Bombardier Inc. [2024]](/content/images/size/w30/2024/08/eurobank-v-bombadier-court-case-dcw.jpeg)
In this 154-page 7-2 split decision, the Supreme Court of Canada grappled with fundamental principles underlying international trade finance. The primary issue is the independence principle (referred to by the Court as autonomy) and the fraud exception to it. Both the majority opinion and the dissent acknowledge that the independence principle is foundational to the integrity of LCs (or in this case Demand Guarantees), upon which beneficiaries rely.
They also acknowledge the necessity of a countervailing fraud exception to independence, upon which applicants rely. The gravamen of this case involved striking a proper balance between these competing reliance interests under the unique circumstances presented, with the majority and the dissent arriving at different conclusions. The case also highlights the legal risk inherent in linked back-to-back undertakings governed by the laws of different countries.
The underlying transaction was a contract, entered into in 1998, under which Bombardier agreed to manufacture and sell amphibious firefighting aircraft to the Hellenic (Greek) Ministry of Defense (HMOD), a sovereign governmental body. The transaction included an Offsets Contract under which Bombardier agreed to subcontract a specified level of procurement to Greek companies, failing which Bombardier would owe liquidated damages to HMOD. Bombardier’s contingent liquidated damages obligation was backed up by a Demand Guarantee (governed by URDG458 and Greek law) issued by Eurobank Ergasias S.A. (Eurobank, a Greek bank) to HMOD.
We’re pleased to share the newest edition of DCW’s premium monthly content. This month’s highlights include: * Two
In the first of his series of DCW articles on major issues surrounding potential revision of UCP, ICC Banking Commission Senior Technical Advisor Dave Meynell examines the concept of negotiation.
Letter of credit cases can reveal a great deal about how the industry's practice rules and standards are viewed and interpreted by the courts.
DCW delivers quarterly LC issuance statistics from the top 600 US-based banks. Here’s the latest data for Q2 2024.
Receive updates on the latest DCW releases
