DCW Updates
DCW Monthly: December 2024
We’re thrilled to share the newest edition of DCW’s premium monthly content. This month’s highlights include: * Five
7 min read
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Kuvera Resources Pte Ltd. v.
JPMorgan Chase Bank, N.A. [2023]
[2023] SGCA 28 [Singapore]
Type of Lawsuit: Beneficiary appealed judgment for Confirming Bank that had dishonoured complying documents citing its sanctions clause.
Parties:
• Seller - PT Borneo Guna Energi
• Buyer - Oilboy DMCC
• Trader - Kuvera Resources Pte Ltd.
• Issuer - unknown, based in Dubai
• Nominated Bank/Advising Bank/Confirming Bank - JPMorgan Chase Bank, N.A.
Underlying Transaction: for purchase of 35,000 metric tonnes of coal (± 10%) to resell to Buyer (the Sales Contract)
LC: two UCP600 letters of credit
Decision: The trial court ruled in favour of Confirming Bank. Beneficiary appealed. The Singapore Court of Appeal, Sundaresh Menon, Judith Prakash & Steven Chong, JJ., reversed.
JPMorgan Chase Bank, N.A. [2023]
[2023] SGCA 28 [Singapore]
Type of Lawsuit: Beneficiary appealed judgment for Confirming Bank that had dishonoured complying documents citing its sanctions clause.
Parties:
• Seller - PT Borneo Guna Energi
• Buyer - Oilboy DMCC
• Trader - Kuvera Resources Pte Ltd.
• Issuer - unknown, based in Dubai
• Nominated Bank/Advising Bank/Confirming Bank - JPMorgan Chase Bank, N.A.
Underlying Transaction: for purchase of 35,000 metric tonnes of coal (± 10%) to resell to Buyer (the Sales Contract)
LC: two UCP600 letters of credit
Decision: The trial court ruled in favour of Confirming Bank. Beneficiary appealed. The Singapore Court of Appeal, Sundaresh Menon, Judith Prakash & Steven Chong, JJ., reversed.
Factual Summary:
As part of an underlying trade between PT Borneo Guna Energi (Seller), an Indonesian company, and Oilboy DMCC (Buyer), a Dubai, UAE company, Kuvera Resources Pte Ltd. (Trader), a trader of Indonesian coal based in Singapore, advanced funds to Seller for purchase of 35,000 metric tonnes of coal (± 10%) to resell to Buyer (the Sales Contract). Trader was party to the Sales Contract which required that the coal be delivered in two shipments and payment made by two letters of credit obtained by Buyer from “a major or international bank” and further confirmed by a bank in Singapore. Accordingly, Buyer/Applicant caused Issuer, based in Dubai, to issue two UCP600 letters of credit of favour of Trader/Beneficiary (hereinafter “Beneficiary”) with terms pursuant to draft LCs attached to the Sales Contract.
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DCW Litigation Digest
Shinetec (Australia) Pty Ltd. v. The Gosford Pty Ltd. [2024]
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DCW Litigation Digest
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DCW Conference Report
2024 Americas LC Law Summit: Executive Summary
For the 25th consecutive year, the Institute of International Banking Law & Practice conducted its one-day Letter of Credit Law Summit. This Executive Summary provides an overview of topics discussed and debated at the conference hosted by Hogan Lovells in New York and conducted as a hybrid event.