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Don’t Stop Me Now: English Letters of Credit and Foreign Law Interference | ZFZ Postcard Cases
Every now and then a commodities trade goes horribly wrong, the parties fall out and someone rings their lawyer to ask: ‘can we stop the letter of credit?’. Injunctions to stop letters of credit are rare as hens teeth in England or the US but more common in other jurisdictions, where civil law systems allow greater latitude.
The Commercial Court’s decision in Macquarie Bank Limited v Banque Cantonale Vaudoise [2024] EWHC 114 (Comm) sets out in crystal clear terms the English law view on attempts to do so and the enduring liability of the issuing bank.