Letter of Credit

This case, in which Al Tamimi successfully represented the Claimant at all levels of the proceedings, is significant for the new legal precedent established by the Court of Cassation. It speaks to what will constitute an implicit waiver to the terms stipulated in a Letter of Credit.

Claim

An action was brought by an International trading company, based in the UAE (the "Claimant") against a bank ("1st Defendant") and a local trading company ("2nd Defendant") requesting the court to order the 2nd Defendant to pay the total value of the Letter of Credit ("LC") amounting to £ 697,329,37 ("Total Amount") or its equivalent in AED and to order the 1st Defendant to jointly pay with the 2nd Defendant £ 639,571,31 out of the Total Amount or its equivalent in AED plus 12% interest from the due date until full payment and to confirm the provisional attachment. The first Defendant requested the court to reject the case/action as the Claimant failed to fulfill its obligation