England’s Vexing Guarantee Legacy: Can Better be Done?

In his recent article on the SalamAir case (Nov/Dec 2021 DCW 37), DCW Editorial Advisory Board member Roger Fayers alluded to Shanghai Shipyard Co Ltd v. Reignwood International Investment (Group) Co Ltd and now informs that the UK’s Supreme Court has granted leave to hear an appeal. A cautiously optimistic Fayers reports that this means (hopefully) that the surety guarantee versus demand guarantee issue, which has so vexed many industry specialists and English judges, may be, if not settled, at least clarified. Although the appeal will not be heard for some time (no sooner than mid-2022), Fayers adds “I’m sure DCW readers will be interested to learn that the issue will be addressed by our highest court.”