SOCIETE GENERALE SA V SAAD TRAINING AND ANOTHER

[2011] EWHC 2424 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 5 October 2011

Letter of credit - Liability of defendants to reimburse issuing bank having reimbursed the confirming bank - UCP 600

On 29 January 2009 the claimant had issued a facility and a guarantee to the defendants to permit them to trade in gold. Two letters of credit had been issued pursuant to the facility. One of the defendant's sellers obtained payment from the confirming bank (NAB) and the claimant reimbursed NAB. In these proceedings, the issuing bank sought to obtain reimbursement from the first defendant under the facility and from the second defendant under the guarantee.