Fife Council v Royal and Sun Alliance Insurance plc

Banking and finance – Lending and security – Performance bond – Notification provisions. Court of Session: In an action in which the pursuer sought payment under a performance bond, which the defender had granted in its favour in security of the obligations of the operator of an opencast mine to restore the site after cessation of mining operations, following the operator's liquidation and failure to undertake full restoration of the site, the court held that the pursuer's notice to the defender conveyed the necessary information consistent with what the bond required in terms of notification in order to trigger the defender's liability, understood from the perspective of a reasonable recipient.

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