Moeve Trading SAU v. Mael Trading FZ LLC
[2026] EWHC 17 (Comm) [England]
Type of Lawsuit: Seller moved for summary judgment on claim for purchase price.
Topics: Commercial LCs; Bills of Lading; Letters of Indemnity (LOI); Confirming Bank; Issuing Bank; Conditional Payment; Absolute Payment; Sale of Goods Act 1979; FOB (Free on Board); Demurrage
Parties:
• Plaintiff/Beneficiary/Seller – Moeve Trading SAU (formerly Cepsa Trading SAU)
• Defendant/Applicant/Buyer – Mael Trading FZ LLC
• Confirming Bank – JP Morgan Chase Bank
• Issuing Bank – Bank of Africa United Kingdom
Underlying Transaction:
Sales and purchase of gasoline and gasoil
Instrument:
Two letters of credit totaling USD 13,031,741.54. Silent as to governing rules.
Decision:
The High Court of Justice, Commercial Court, Peter MacDonald Eggers KC, Deputy Judge, granted Seller's motion for summary judgment on its claim for the purchase price and dismissed Buyer's application for a stay; dismissed Buyer’s counterclaim for loss of profit; and dismissed Seller’s application for summary judgment for the balance of Buyer’s demurrage claim.
Rationale:
Summary judgment granted where sale contract established letter of credit as conditional payment and title to goods passed to Buyer on shipment, entitling Seller to claim purchase price directly from Buyer following Issuing Bank’s failure to pay under LC regardless of whether Seller caused non-payment through non-compliant presentation.
Factual Summary:
Seller and Buyer entered into a contract for the sale of gasoline and gasoil on a Free on Board basis. Under the contract, title to the cargo passed to the Buyer upon shipment. The purchase price of approximately USD 13 million was payable 60 days after the bill of lading date. To secure payment, Buyer arranged Issuing Bank to issue two letters of credit which were confirmed by Confirming Bank.
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