ARE YOU NAVIGATING DEMANDS UNDERLETTERS OF CREDIT AND DEMAND GUARANTEESAS WELL AS YOU WOULD LIKE?

UNREAL TIMES CALL FOR REAL ACTION AND OUR TEAM OF EXPERT TRADE FINANCE LITIGATORS HAVE A GUARANTEED SOLUTION TO HELP YOU THROUGH THE CURRENT MARKET CHALLENGES. PRESSURE ON SUPPLY CHAINS AND PROJECT DISRUPTIONS WILL INEVITABLY RESULT IN AN INCREASED LIKELIHOOD OF PRESENTATIONS BEING MADE UNDER PERFORMANCE BONDS, DEMAND GUARANTEES AND STANDBY LETTERS OF CREDIT. WE HAVE BEEN CONTACTED BY MULTIPLE CLIENTS EXPERIENCING AN INCREASE IN ACTIVITY IN THIS AREA.

We advise on all aspects of the demand guarantee and standby letter of credit roles and lifecycle, including acting in relation to a wide variety of instruments for banks on issues arising from their relationship with other banks, beneficiaries and their own customers.

Our experience covers advising on and litigating claims arising out of demand guarantees and standby letters of credit with the added benefit that all of our trade finance litigators have broad finance litigation experience. We also have strong connections with chambers giving you direct access to market leading counsel in this area.

A SNAPSHOT OF WHAT WE CAN ADVISE ON INTERPRETING

ICC RULES

STANDARD OF VERIFICATION

DEFENDING INJUNCTIONS

WAIVER AND ENGAGEMENT WITH APPLICANT

FRAUD AND ILLEGALITY

DEALING WITH ORIGINAL DOCUMENTS

CANCELLATION OF INSTRUMENTS

REJECTING A PRESENTATION

EXTENSIONS TO INSTRUMENTS

WE CAN GUARANTEE YOU: OUR RECENT CONTENTIOUS TRADE FINANCE EXPERIENCE

Acting for the issuing bank in Commercial Court litigation arising out of whether a demand made under a revolving $130m standby letter of credit was made fraudulently. Petrosaudi Oil Services (Venezuela) Ltd v Novo Banco SA and others [2017] EWCA Civ 9.

Advising on allegedly fraudulent demands made under an Advance Payment Guarantee and defending associated injunction proceedings.

Advising an issuing bank on multiple presentations made under a standby letter of credit and reinstatement of the standby, each of which gave rise to complex and novel contractual interpretation issues and issues under the ISP 98 rules.

Advising a UK bank in relation to whether a standby letter of credit had been effectively extended. The standby was subject to the UCP 600 rules.

Advising a UK bank in relation to a contested demand under an Advanced Payment Guarantee.

Acting for a major UK bank in relation to a $15m+ standby letter of credit it confirmed and seeking reimbursement from the issuing bank following payment to the beneficiary. We collaborated with foreign counsel in relation to proceedings in the UK and overseas.

Advising a UK bank on the extent of the fraud exemption and its risk of having to pay under multiple performance, advance payment and retention guarantees governed by a variety of rules, including arrangements to secure the bank’s liability under the guarantees.

Advising a bank in relation to whether it could effectively cancel an extension to a standby letter of credit after it had sent a letter of extension.

Acting for a UK bank in injunction proceedings arising out of allegedly fraudulent demands made under a demand guarantee.

RICHARD CLAYTON

Partner+44 (0)20 7160 3225 richard.clayton@addleshawgoddard.com

MICHAEL BARNETT

Divisional Managing Partner +44 (0)20 7544 5302 michael.barnett@addleshawgoddard.com

SIVAN DANIELS

Legal Director+44 (0)20 7160 3284sivan.daniels @addleshawgoddard.com

CONTACTS

RAPID RESPONSE

SIGNIFICANT EXPERTISE

CLEAR ADVICE AND GUIDANCE

© 2020 Addleshaw Goddard LLP. All rights reserved. Extracts may be copied with prior permission and provided their source is acknowledged. This document is for general information only. It is not legal advice and should not be acted or relied on as being so, accordingly Addleshaw Goddard disclaims any responsibility. It does not create a solicitor-client relationship between Addleshaw Goddard and any other person. Legal advice should be taken before applying any information in this document to any facts and circumstances. Addleshaw Goddard is an international legal practice carried on by Addleshaw Goddard LLP (a limited liability partnership registered in England & Wales and authorised and regulated by the Solicitors Regulation Authority and the Law Society of Scotland) and its a� liated undertakings. Addleshaw Goddard operates in the Dubai International Financial Centre through Addleshaw Goddard (Middle East) LLP (registered with and regulated by the DFSA), in the Qatar Financial Centre through Addleshaw Goddard (GCC) LLP (licensed by the QFCA), in Oman through Addleshaw Goddard (Middle East) LLP in association with Nasser Al Habsi & Saif Al Mamari Law Firm (licensed by the Oman Ministry of Justice), in Hamburg through Addleshaw Goddard (Germany) LLP (a limited liability partnership registered in England & Wales) and in Hong Kong through Addleshaw Goddard (Hong Kong) LLP, a Hong Kong limited liability partnership pursuant to the Legal Practitioners Ordinance and regulated by the Law Society of Hong Kong. In Tokyo, legal services are o� ered through Addleshaw Goddard’s formal alliance with Hashidate Law O� ce. A list of members/principals for each fi rm will be provided upon request. The term partner refers to any individual who is a member of any Addleshaw Goddard entity or association or an employee or consultant with equivalent standing and qualifi cations. ADD.GOD.788.20