Global law firm Clyde & Co has successfully defended its client PetroSaudi at the Court of Appeal.
In proceedings where Clyde & Co acted for the successful appellant, the Court of Appeal has held that a solicitor who signed demands under a standby letter of credit correctly understood the statement of law he was certifying.
In the Judgment handed down this morning, the Court of Appeal completely vindicated PetroSaudi and in particular its General Counsel and ordered payment of sums owing to them under a standby letter of credit (SBLC).
This judgement overruled the High Court's previous decision that the signatory was fraudulent in their representation of law, Christopher Clarke LJ (with whom Lewison LJ agreed) held that the signatory's understanding not only was far from fraudulent but was in fact "the same conclusion as I have reached" and "consistent with commercial good sense".
David Bennet, Partner at Clyde & Co and lead lawyer on the case, comments:
"This decision strongly vindicates the conduct of PetroSaudi and its General Counsel, finding against any suggestion that they acted in any way inappropriately in enforcing the rights given to them."