Yuchai Dongte v Suisse Credit Capital – Interpretation and effect of Letters of Credit sent through Swift

5 November, 2018

In a claim in the Commercial Court, Christopher Hancock QC (sitting as a Judge of the High Court) found in favour of a Chinese manufacturer, Yuchai Dongte, in its claim for payment on a Letter of Credit. The issues before the Court were: (a) whether the Defendant financial services firm was the issuing bank of a Letter of Credit which it communicated through Swift (and thereby liable on the credit pursuant to the incorporated provisions of UCP 600); (b) whether the Defendant had excluded liability using contractual disclaimers; and (c) whether the Claimant was estopped by convention from asserting that the Defendant was the issuer of the credit. The Court found in favour of the Claimant on each of the issues, determining points of principle as to the interpretation and effect of UCP 600 in documentary credits.

Edward Brown, instructed by Ian Hargreaves and Chiz Nwokonkor of Covington & Burling, acted for the Claimant. Read the judgment in full here.