Wragge Lawrence Graham & Co

UK 200 2013 position: 25

Once due under an on-demand bond, always due

Wragge & Co last reported on Wuhan Guoyu Logistics Group Co Ltd v Emporiki Bank of Greece SA in April 2013. The dispute related to a shipbuilding contract where the bank guaranteed the payment obligations of its customer, the buyer, to the claimant seller under the contract. There was a dispute as to whether a payment instalment was due and the claimant called for payment under the payment guarantee from the bank.

The Court of Appeal had determined that the payment guarantee was a performance bond and that payment was to be made under it on demand, whether or not there was an underlying dispute as to payment between the contracting parties.

In the latest foray before the Court of Appeal, the issue was whether when the bank released money under the bond to the claimant, the claimant held it on trust for the bank, or the bank’s customer, as argued by the bank…

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Analysis from The Lawyer

  • Paul Wilson

    Regional: attempted merger

    Alliances, failed and successful, are the story of the year outside London

  • Belinda Bradberry

    Interior designs

    Polish up your retention policy - private practice lawyers are increasingly eyeing in-house roles

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Overview

55 Colmore Row
Birmingham
B3 2AS
UK
http://www.wragge-law.com/

Turnover (£m): 120.50
No. of Lawyers: 458