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Shipping – Bill of lading. SG made an unconditional tender of the bill of lading to the claimant bank on G's behalf, but the claimant had declined to accept it. The claimant refused to make payment under the letter of credit and G commenced proceedings. The claimant then paid the full amount of the face value of the letter of credit. It subsequently brought proceedings against the defendant. The judge held that the claimant had become the holder of the bill of lading when it was presented at its counters under the letter of credit, and so had acquired the right to sue on that date, or when it met G's demands. The defendant appealed. The Court of Appeal, Civil Division, in dismissing the defendant's appeal, held that, although the judge had given a different meaning to the Carriage of Goods by Sea Act 1992, s 5(2)(b), he had been right to hold that the claimant had become the holder of the bill of lading when it met G's demands and that the rights of suit under the contract of carriage had become vested in it.
Shipping – Bill of lading. SG made an unconditional tender of the bill of lading to the claimant bank on G's behalf, but the claimant had declined to accept it. The claimant refused to make payment under the letter of credit and G commenced proceedings. The claimant then paid the full amount of the face value of the letter of credit. It subsequently brought proceedings against the defendant. The judge held that the claimant had become the holder of the bill of lading when it was presented at its counters under the letter of credit, and so had acquired the right to sue on that date, or when it met G's demands. The defendant appealed. The Court of Appeal, Civil Division, in dismissing the defendant's appeal, held that, although the judge had given a different meaning to the Carriage of Goods by Sea Act 1992, s 5(2)(b), he had been right to hold that the claimant had become the holder of the bill of lading when it met G's demands and that the rights of suit under the contract of carriage had become vested in it.
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