Parent and group company guarantees, dormant companies and adjudication enforcement – Practical Law: Construction Blog
‘Can a dormant company enforce an adjudicator’s decision in its favour?.’
Practical Law: Construction Blog , 1st March 2023
Category: guarantees
Case Preview: Republic of Mozambique v Privinvest Shipbuilding SAL (Holding) and Ors – UKSC Blog
‘In this post, Eilidh Douglas, Senior Associate in the ICE Disputes team at CMS, previews the case of Republic of Mozambique v Privinvest Shipbuilding SAL (Holding) and Ors, which was heard by the UK Supreme Court on 24 and 25 January 2023.’
UKSC Blog, 26th January 2023
Source: ukscblog.com
TCC provides reminder of the meaning of paragraph 9(2) of the Scheme – Practical Law: Construction Blog
‘I appreciate that some of you might be reading this blog on your summer holidays, so you may well have far better things to be doing with your time (ordering another piña colada perhaps?). I will therefore keep the blog short – what might be termed a “blogette”. As one would expect over the summer break, there haven’t been many reported TCC cases recently and so the case I want to discuss today is from June, namely ML Hart Builders Ltd (in liquidation) v Swiss Cottage Properties Ltd, which is a judgment of Mr Roger Ter Haar QC sitting as a deputy High Court judge.’
Practical Law: Construction Blog, 17th August 2022
Court draws adverse inferences from “deliberate destruction” of emails – Litigation Futures
‘A High Court has described the double deletion by a witness for the claimant of crucial emails on the eve of the trial of a film financing dispute as a “very serious misdeed”.’
Litigation Futures, 23rfd February 2021
Source: www.litigationfutures.com
Yuanda v Multiplex – “ascertaining” damages pre-adjudication under ABI bond – Practical Law Construction Blog
‘The TCC has just handed down judgment in Yuanda (UK) Company Ltd v Multiplex Construction Europe Ltd and another, which will be of interest to the construction industry as it deals with how ABI-type performance bonds operate.’
Practical Law Construction Blog, 4th March 2020
Tecnicas Reunidas Saudia for Services and Contracting Co. Ltd. v. Korea Development Bank – Atkin Chambers
‘Rupert Choat and CMS Cameron McKenna Nabarro Olswang LLP were successful in obtaining summary judgment against Korea Development Bank (KDB) in the Technology and Construction Court on 14 February 2020. KDB was ordered to pay the full value of a demand guarantee (£8.2 million) plus interest and costs.’
Atkin Chambers, 20th February 2020
Source: www.atkinchambers.com
Wife’s guarantee to bank unenforceable due to husband’s undue influence (Syndicate Bank v Dansingani) – 4 New Square
‘Banking & Finance analysis: Ben Archer, barrister, at 4 New Square, examines a High Court decision that a guarantee given by the first defendant company director to secure the company’s liabilities to the claimant bank was enforceable but a similar guarantee given by the second defendant company director, who was the first defendant’s wife, was not enforceable as her execution of it had resulted from his undue influence.’
4 New Square, 7th February 2020
Source: www.4newsquare.com
The impact of foreign insolvency proceedings on English law bank guarantees: ascertaining foreign law, the scope of the European Insolvency Regulation and the effect of pending actions – 4 New Square
‘Shail Patel acted for the successful defendants at trial in Bank of Baroda v Maniar [2019] EWHC 2463 Comm, in resisting claims by the bank on personal guarantees. The case raised a number of important points of European cross border insolvency law under the European Insolvency Regulation, and the English Court’s exercise of a foreign law judicial power.’
4 New Square, 28th October 2019
Source: www.4newsquare.com
Insolvency proceedings, guarantees and contractual pre-conditions – Hardwicke Chambers
‘If you are considering commencing insolvency proceedings against another party, do ensure that they actually owe you a debt before you do so. This point is so obvious that it barely needs stating. However, Martin v McLaren Construction Ltd serves as an example of how things can go badly wrong if it is not double-checked.’
Hardwicke Chambers, August 2019
Source: hardwicke.co.uk
HMRC statutory demand upheld against guarantor – OUT-LAW.com
‘The High Court in England has ruled that a statutory demand based on a judgment debt is valid, despite the judgment debt arising from a guarantee which prohibited the creditor from enforcing the guarantee in bankruptcy proceedings. The High Court also clarified that judgment interest and costs do not form part of the debt and can be enforced separately.’
OUT-LAW.com, 24th January 2019
Source: www.out-law.com
General Mediterranean Holding SA SPF v Qucomhaps Holdings Ltd [2018] EWCA Civ 2416 – Hardwicke Chambers
‘GMH provided loans to Qucomhaps of around $4,000,000 to assist it in purchasing the business of the aircraft manufacturer, Moravan. Repayment was secured by a personal guarantee from Mr Harkin, Qucomhaps’ managing director. Further GMH was granted fixed and floating charges over the assets of Moravan Aviation, a wholly owned subsidiary of Qucomhap which had acquired the assets of Moravan.’
Hardwicke Chambers, 28th November 2018
Source: hardwicke.co.uk
Nearly, but not quite: the difficulties of resisting payment of an on-demand guarantee – Practical Law: Construction Blog
‘It is notoriously difficult to resist payment following a call on an on-demand guarantee or bond. Generally, nothing less than a seriously arguable case of fraud by the beneficiary will suffice. The stringency of this test is backed by strong policy arguments militating in favour of protecting the integrity of the banking system. However, even where a seriously arguable case of fraud is made out, the balance of convenience may weigh against injunctive relief, as demonstrated recently in Tetronics (International) Ltd v HSBC Bank plc.’
Practical Law: Construction Blog, 16th May 2018
Harbour View, contractor insolvency and the importance of a guarantee expiry date – Practical Law: Construction Blog
‘One of the interesting features of the recent decision of Coulson J in Ziggurat (Claremont Place) LLP v HCC International Insurance Company Plc is the effect on a guarantee of a contractor becoming insolvent many years after a construction project has been completed. In Ziggurat, the amended ABI model form of guarantee bond had not yet expired. This allowed the employer to make a claim under the guarantee arising out of the contractor’s insolvency, notwithstanding the fact that the contractor’s employment had already been terminated and the project had achieved practical completion.’
Practical Law: Construction Blog, 21st February 2018
Supreme Court rules on contractor’s liability for design – OUT-LAW.com
‘A warranty provided by construction company MT Hojgaard (MTH) that the underlying works would have a service life of 20 years took precedence over conflicting terms in the contract, including adherence to industry standards, the UK’s highest court has ruled.’
OUT-LAW.com, 3rd August 2017
Source: www.out-law.com
Law firm should have warned property investor clients of “Mafia risk”, CA rules – Legal Futures
‘A law firm with offices in Italy and England has lost its appeal against a High Court ruling that it was under a duty to warn British and Irish property investors of the risks of investing in a part of Italy associated with organised crime.’
Legal Futures, 2nd August 2017
Source: www.legalfutures.co.uk
High Court: commercial tenant cannot assign lease to its guarantor – OUT-LAW.com
‘Anti-avoidance provisions in the 1995 Landlord and Tenant (Covenants) Act prevent a tenant from assigning a lease to its guarantor, the High Court has ruled.’
OUT-LAW.com, 21st March 2016
Source: www.out-law.com
Judge allows hotel companies to reassign leases without losing benefit of associated guarantees – OUT-LAW.com
‘A High Court judge has approved arrangements allowing companies within the Hilton group to reassign leases between themselves without the landlord losing the benefit of a guarantee granted by the parent company.’
OUT-LAW.com, 20th January 2015
Source: www.out-law.com
Constructing safety nets – Hardwicke Chambers
‘Notwithstanding the economic upturn, many UK contractors are still tendering for work at negative margins; sustaining losses; and arguably operating one major dispute away from the brink. This article examines the common forms of security used by employers to safeguard performance by contractors, and/or protect against insolvency, and considers the degree of comfort they afford.’
Hardwicke Chambers, 16th October 2014
Source: www.hardwicke.co.uk
Nominal damages for ‘negligent’ yacht advice – Law Society’s Gazette
‘A leading firm has avoided paying out significant damages despite admitting negligence when it gave advice on the purchase of a £3.6m yacht.’
Law Society’s Gazette, 5th August 2014
Source: www.lawgazette.co.uk
