What We Can Learn From the Kuvera Resources v. JPMorgan Chase Bank Case

In the November/December 2023 issue of Documentary Credit World, there is an interesting piece of the Litigation Digest summary of the Singapore Court of Appeal case of Kuvera Resources Pte Ltd v. JPMorgan Chase Bank N.A. It was about the Confirming Bank’s refusal to pay the Beneficiary on an otherwise complying presentation on grounds relating to US sanctions. Beneficiary sued Confirming Bank for wrongful dishonor, alleging breach of contract. The trial court in Singapore ruled in favour of Confirming Bank, which was subsequently reversed by the appellate court.

see Kuvera Resources case history

Whilst the case involves the Confirming Bank incorporating a sanctions clause (the Sanctions Clause) in its confirmation of a UCP600 documentary credit, as well as issues regarding the exercising of the Sanctions Clause in the dishonor of an otherwise complying presentation, the case offers some valuable insights for the trade finance community, including banks as well as beneficiaries.