YUANDA (UK) CO LTD v MULTIPLEX CONSTRUCTION EUROPE LTD AND ANOTHER

[2020] EWHC 468 (TCC), Technology and Construction Court, Fraser J, 28 February 2020

Nature of guarantee – Primary or secondary liability – Whether decision of an adjudicator entitled party to make a call under the guarantee

The claimant entered into an agreement with a bank whereby the bank undertook an obligation to make a payment to the defendant in certain circumstances. The defendant made a call on the guarantee in which it sought payment from the bank of £4,411,490.70. The claimant responded on 20 January by seeking an interim injunction against both the defendant and the bank to prevent the latter from paying out in response to the demand. That injunction was granted and the issue in the present proceedings was whether the claimant was entitled to continue that injunction.