QFC 008/2019, [2020] QIC (F) 5

(1) Obayahsi Qatar LLC (2) HBK Contracting Co. WLL v Qatari First Bank LLC (Public)

This case involved payments due as a result of a performance bond and advance payment guarantee issued by a bank to guarantee work of a subcontractor on a construction project. Key issues included whether there should be a summary judgement or if there was a fraud exception as the bank and subcontractor had made a supplementary contract using these instruments as a guarantee for additional payments the contractors had to make to pay for labour which should have been paid by the subcontractor who had not completed the job which the bank had not been made aware of.

Background

Obayashi Qatar LCC and HBK Contracting Co WLL brought, an application for summary judgment against Qatar First Bank LCC.

The Claimants argued that the Bank was liable to satisfy demands for payment made under two guarantees described - an undated advance payment guarantee and an undated performance bond. The Bank denied any liability and brings a Counterclaim against the Claimants.