Source: All England Reporter
Publisher Citation: [2015] All ER (D) 123 (Apr)
Neutral Citation: [2015] EWHC 999 (Comm)
Court: Queen's Bench Division, Commercial Court
Judge:

Mrs Justice Carr DBE

Representation Christopher Smith QC and Neil Hart (instructed by Hill Dickinson LLP) for SBV.
  Richard Handyside QC and Adam Zellick (instructed by Allen & Overy LLP) for the bank.
Judgment Dates: 17 April 2015

Catchwords

Guarantee - Enforcement - Estoppel - Claimant company, SBV, contracting for construction of two ships - Defendant bank helping to finance venture - Ships not being built on time - SBV obtaining awards against shipbuilders - SBV seeking repayment from defendant under guarantees provided to shipbuilders - Whether judgments obtained in China against SBV preventing bank from being liable - Whether bank's application for stay to be allowed.

The Case

Guarantee Enforcement. The claimant company, SBV, contracted for the construction of two ships. The ships were not built on time and it obtained awards against the shipbuilders. Via two guarantees, SBV sought repayment from the defendant Chinese bank, which had helped to finance the venture. The question was whether judgments obtained in China against SBV would prevent the bank from being liable. The Commercial Court held that the Chinese judgments did not prevent the bank from being liable and that the bank's application for a stay would be dismissed.

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