Source: All England Reporter
Publisher Citation: [2002] All ER (D) 153 (Oct)
Court: Chancery Division

Peter Smith J

Representation Nicholas Stewart QC and Ian Clark (instructed by Gregsons) for the claimant.
  Richard Atkins QC and Antony Zacaroli (instructed by Allen & Overy) for the defendants.
Judgment Dates: 9 October 2002


Guarantee - Construction - Payment under guarantee - Claimant issuing guarantees - Bank issuing claimant counter-guarantees - Whether claimant required to make payment under guarantees before implementation of counter-guarantees.

The Case

On the true construction of an agreement governed by Libyan law, the court held that the claimant was required to make a payment under guarantees before it could be reimbursed for that sum under counter guarantees.

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