QFC 012/2019
Leonardo S.p.A v Doha Bank Assurance Company LLC
Type
Case
Court
Qatar Financial Centre - Court of Appeal
Jurisdiction
Qatar Financial Centre
Taxonomy
General Military & War, Terms, Guarantees
Decision date
1 Mar 2020
Panel
Lord Thomas Cwmgiedd, Justice Chelva Rajah, Justice Ali Malek
Catchwords
Defence - Subcontract -Performance Bond - Advance Payment Guarantee
This case involved the refusal of a bank to pay an advance payment guarantee and performance bond which was related to a defence subcontract. Key points included the required documentation which needed to be included with the guarantee claim, the documentation rejecting the claim and if the claim was excessive.
Background
In August 2018 the claimant Leonardo S.p.A made demands under an advance payment guarantee and performance bond issued by the defendant. The defendant rejected the demands as they did not comply with the terms of the guarantee.
At the court of first instance in QFC Case No. 003/2019 the court ruled in favour of Leonardo S.p.A in a claim for 14,619, 440 Euros.
The defendant sought permission to appeal which was granted.