DCC 455/2006
Type
Case
Court
Dubai Court of Cassation
Jurisdiction
Dubai, United Arab Emirates
Taxonomy
Trade & Freedom to Trade, Admiralty, Shipping & Navigation, Types of Insurance, Lending & Security, Payment & Payment Systems, Civil Evidence
Copyright
LexisNexis
Decision date
20 Mar 2006
Catchwords
Import – Shipping – Insurance – Bank – Letter of Credit – Insurance – Duty of Insured – Evidence
This case involved the rights of a bank where a letter of credit for the import of goods to claim on an insurance policy for the loss of the goods when it was not the direct party in the transport contract. The case also looked at the duties of the insured party in such cases and whether their delay in notifying the insurance company had impacted the right to claim.
Background
A Respondent Company filed suit No. 231/2005 before the Dubai Court of First Instance against the Appellant Company requesting US $ 108,680 or its equivalent in 399,942/40 AED and interest of 9% from the date of filing the claim until payment was completed. The Respondent Company explained that it contracted with the Italian company producing perfumes to supply 2280 boxes of perfumes for a total of $ 170,210 under invoice No. 49 dated 23-2-2003. The Plaintiff opened an irrevocable letter of credit to pay for the goods through Dubai Islamic Bank.
On 15-8-2003 the goods were shipped from the port of La Plasperia, Italy to the port in Dubai on board a ship, under the bill of lading No. 29165-40346.