Shanghai Shipyard Co Ltd v Reignwood International Investment (Group) Company limited [2020]

Shanghai Shipyard Co Ltd v Reignwood International Investment (Group) Company limited [2020] EWHC 803 — 3 April 2020 (Knowles J CBE)

“Under a shipbuilding contract, the builder started arbitration first against the buyer, claiming US0170m and then its guarantor. Ruling on a preliminary issue as to whether the guarantee was a demand bond or a "see to it" guarantee, the Commercial Court found that on a true construction of the guarantee, there was no room for a presumption that it was a demand bond, therefore it was a "see to it" guarantee — bearing in mind in particular that this was not an undertaking by a financial institution but one given by a parent company.”

Antonino Cordopatri
E. G. Arghyrakis & Co.
08th April 2020