Yuanda v Multiplex – “ascertaining” damages pre-adjudication under ABI bond – Practical Law Construction Blog

Posted March 5th, 2020 in construction industry, contracts, damages, guarantees, news by tracey

‘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.’

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Practical Law Construction Blog, 4th March 2020

Source: constructionblog.practicallaw.com

Tecnicas Reunidas Saudia for Services and Contracting Co. Ltd. v. Korea Development Bank – Atkin Chambers

Posted February 26th, 2020 in chambers articles, guarantees, interpretation, news by sally

‘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.’

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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.’

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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

Posted October 29th, 2019 in EC law, enforcement, guarantees, insolvency, Ireland, news, notification, service by sally

‘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.’

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4 New Square, 28th October 2019

Source: www.4newsquare.com

Legal advice privilege “survives” company’s dissolution – Legal Futures

‘Legal advice privilege (LAP) attaching to communications between a company and its lawyers survives the dissolution of the company, even if the Crown has disclaimed all interest in its former property, the Court of Appeal has ruled.’

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Legal Futures, 7th October 2019

Source: www.legalfutures.co.uk

Insolvency proceedings, guarantees and contractual pre-conditions – Hardwicke Chambers

Posted August 29th, 2019 in contracts, guarantees, insolvency, news, statutory demands by sally

‘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.’

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Hardwicke Chambers, August 2019

Source: hardwicke.co.uk

HMRC statutory demand upheld against guarantor – OUT-LAW.com

Posted January 25th, 2019 in bankruptcy, enforcement, guarantees, news, statutory demands by tracey

‘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.’

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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

Posted December 12th, 2018 in contracts, guarantees, news, surety by sally

‘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.’

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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

Posted May 17th, 2018 in banking, construction industry, fraud, guarantees, news by tracey

‘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.’

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Practical Law: Construction Blog, 16th May 2018

Source: constructionblog.practicallaw.com

Harbour View, contractor insolvency and the importance of a guarantee expiry date – Practical Law: Construction Blog

Posted February 21st, 2018 in construction industry, guarantees, insolvency, news, time limits by tracey

‘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.’

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Practical Law: Construction Blog, 21st February 2018

Source: constructionblog.practicallaw.com

Supreme Court rules on contractor’s liability for design – OUT-LAW.com

Posted August 4th, 2017 in construction industry, contracts, energy, guarantees, news by sally

‘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.’

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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.’

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Legal Futures, 2nd August 2017

Source: www.legalfutures.co.uk

High Court: commercial tenant cannot assign lease to its guarantor – OUT-LAW.com

Posted March 23rd, 2016 in assignment, guarantees, insolvency, landlord & tenant, leases, news by tracey

‘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.’

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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

Posted January 21st, 2015 in assignment, guarantees, hotels, landlord & tenant, leases, news, third parties by sally

‘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.’

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OUT-LAW.com, 20th January 2015

Source: www.out-law.com

Constructing safety nets – Hardwicke Chambers

Posted November 18th, 2014 in construction industry, contracting out, guarantees, insolvency, news by sally

‘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.’

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Hardwicke Chambers, 16th October 2014

Source: www.hardwicke.co.uk

Nominal damages for ‘negligent’ yacht advice – Law Society’s Gazette

Posted August 6th, 2014 in contracts, damages, guarantees, law firms, negligence, news, sale of goods by sally

‘A leading firm has avoided paying out significant damages despite admitting negligence when it gave advice on the purchase of a £3.6m yacht.’

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Law Society’s Gazette, 5th August 2014

Source: www.lawgazette.co.uk

Abercrombie and others v Aga Rangemaster Ltd – WLR Daily

Posted October 16th, 2013 in appeals, employment, guarantees, law reports, remuneration, working time by sally

Abercrombie and others v Aga Rangemaster Ltd [2013] EWCA Civ 1148; [2013] WLR (D) 381

“The question governing liability to make guarantee payments under section 28 of the Employment Rights Act 1996 was whether the employee ‘would normally be required to work [on the day in question] in accordance with his contract of employment’. The fact that an agreement introducing changes to an employee’s working hours was temporary did not prevent the day in question remaining ‘normally’ a working day.”

WLR Daily, 11th October 2013

Source: www.iclr.co.uk

“All Money” Guarantees Mean What They Say – Littleton Chambers

Posted July 31st, 2013 in banking, contracts, guarantees, interpretation, news, vicarious liability by sally

“On 9 July I looked at a Court of Appeal decision which showed that it remained arguable that a change in the arrangements between a creditor and the principal debtor might so alter the subject matter of what was guaranteed as to discharge the guarantor. This week comes a timely reminder that the first and fundamental step is to construe the contract to see what obligations are covered by the guarantee.”

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Littleton Chambers, 19th July 2013

Source: www.littletonchambers.com

Discharge of Guarantees – The Doctrine of “Purview of the Guarantee” – Is There a “Get Out of Jail Free Card” For Guarantors? – Littleton Chambers

Posted July 10th, 2013 in construction industry, contracts, guarantees, news, summary judgments by sally

“Well–drawn guarantees contain comprehensive ‘anti-discharge’ provisions, designed to prevent a guarantor being discharged from liability by any post-guarantee amendments to the principal transaction or extensions of time to pay or other indulgence given to the principal debtor without the guarantor’s knowledge or consent. This right to be discharged is generally known as the rule in Holme v Brunskill (1878) 3 QBD 495) after the leading case that set out the mature principle. Banks and others have continuously refined these ‘anti-discharge’ provisions to try to make sure that the rule in Holme v Brunskill is stripped of its effect.”

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Littleton Chambers, 9th July 2013

Source: www.littletonchambers.com

Essay writing service’s ad banned for implying ‘guaranteed’ grade – The Guardian

Posted May 8th, 2013 in advertising, complaints, examinations, guarantees, news, universities by sally

“An advert for an essay writing service has been banned for implying that students had a moneyback guarantee that they would get the grade they wanted.”

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The Guardian, 8th May 2013

Source: www.guardian.co.uk