Autonomy (Independence)

Recent Challenges to the Independence Principle in the Courts

An LC's independence from the underlying transaction it supports is one of the core tenets that distinguishes this instrument type from other promises. When disputes arise, courts at times have given uneven treatment to independent undertakings with regard to the independence principle.

Pacific Atlantic Pipeline Construction Inc. v. Coastal Gaslink Ltd. [2024]

Canada's Court of Appeal of Alberta affirmed trial judgment, dismissing LC Applicant's appeal and terminating short term interim injunction.

Eurobank Ergasias S.A. v. Bombardier Inc. [2024]

The Canadian Supreme Court affirmed Quebec appellate and trial courts, upholding permanent injunction restraining Counter-Guarantor against payment of demand by Counter-Guarantee Beneficiary.

Pacific Atlantic Pipeline Construction Inc. v. Coastal Gaslink Ltd. [2023]

Canada's Court of King’s Bench of Alberta denied injunction application of LC Applicant who sought to enjoin Beneficiary demand on standby LC.

The Celestial Case: Does the UK Regulation Render Confirmer’s Payment Illegal?