DCW Updates
September Roundup
September's DCW is live! We have an exciting fresh batch of content that's just launched. Scroll
11 min read
💡
The “Jeil Crystal” [2024]
[2024] SGHC 74 [Singapore]
Type of Case: Issuer sued Vessel Owner for misdelivery; Vessel Owner alleged wrongful arrest.
Parties:
• Plaintiff/Issuer – Banque Cantonale de Genève
• Defendant/Vessel Owner – Jeil International Co. Ltd.
• Charterer/Buyer/Applicant/On-Seller – GP Global APAC Pte Ltd.
• Seller/Beneficiary – IRPC Public Co. Ltd.
• Vessel Operator – Dae Myung International Pte Ltd.
• Broker – RG Chartering Sdn Bhd
• Second Buyer – Standard Asiatic Oil Co. Ltd.
• Presenting Bank – Bank of Ayudhya
Underlying Transaction: Purchase and re-sale of 2,000MT of oil.
LC: Documentary credit for unspecified value. Silent as to governing rules.
Decision: The High Court of Singapore, Mohan, J., dismissed all claims by Issuer and ruled in favour of Vessel Owner on its counterclaim for wrongful arrest.
Rationale: Misdelivery claim brought by financing bank rejected where bank endorsed and delivered without qualification original bills of lading to customer who resold goods under switched B/Ls; conduct by bank in arresting vessel constituted gross negligence implying malice justifying damages for vessel owner.
[2024] SGHC 74 [Singapore]
Type of Case: Issuer sued Vessel Owner for misdelivery; Vessel Owner alleged wrongful arrest.
Parties:
• Plaintiff/Issuer – Banque Cantonale de Genève
• Defendant/Vessel Owner – Jeil International Co. Ltd.
• Charterer/Buyer/Applicant/On-Seller – GP Global APAC Pte Ltd.
• Seller/Beneficiary – IRPC Public Co. Ltd.
• Vessel Operator – Dae Myung International Pte Ltd.
• Broker – RG Chartering Sdn Bhd
• Second Buyer – Standard Asiatic Oil Co. Ltd.
• Presenting Bank – Bank of Ayudhya
Underlying Transaction: Purchase and re-sale of 2,000MT of oil.
LC: Documentary credit for unspecified value. Silent as to governing rules.
Decision: The High Court of Singapore, Mohan, J., dismissed all claims by Issuer and ruled in favour of Vessel Owner on its counterclaim for wrongful arrest.
Rationale: Misdelivery claim brought by financing bank rejected where bank endorsed and delivered without qualification original bills of lading to customer who resold goods under switched B/Ls; conduct by bank in arresting vessel constituted gross negligence implying malice justifying damages for vessel owner.
Summary & Analysis:
To support its purchase of 2,000MT of Lube Base Oil (the Cargo) from IRPC Public Co. Ltd. (Seller), GP Global APAC Pte Ltd. (Buyer/Applicant) applied for and caused Banque Cantonale de Genève (Issuer) to issue an irrevocable LC in favor of Seller/Beneficiary.[[1]] As Buyer/Applicant intended to on-sell the Cargo to Standard Asiatic Oil Co. Ltd. (Second Buyer),[[2]] Issuer contemplated a “self-liquidating” transaction.[[3]] The Cargo was laden onboard the “Jeil Crystal” (the Vessel) in Thailand to be shipped to Bangladesh; Buyer/Applicant chartered the Vessel from Jeil International Co. Ltd. (Vessel Owner) for a single voyage.
Read next
DCW Articles
eDocuments: how harmonization is driving adoption
Argentine lawyer Jorge Riva highlights how ICC rules are already providing an adequate environment for accommodating electronic means and how intense work continues for expanded use of electronic credits.
DCW Litigation Digest
Experior Global Warehousing, LLC v. BTC III Hamilton DC LLC [2024]
Applicant motioned for preliminary injunction following failed mediation.
DCW Litigation Digest
Banque De Commerce Et De Placements S.A. v. China Aviation Oil (Singapore) Corp. [2024]
Issuer sued beneficiary alleging sham transaction and breach of warranties; beneficiary and prior sellers lodged indemnification claims.
![Pacific Atlantic Pipeline Construction Inc. v. Coastal Gaslink Ltd. [2024]](/content/images/size/w30/2024/08/pacific-atlantic-pipeline-case-summary-dcw.jpeg)
DCW Feature
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.