Standard Chartered Bank v Korea Exchange Bank: Construction of Letters of Credit & Admissibility of Expert Evidence
In Standard Chartered Bank v Korea Exchange Bank, the High Court of Singapore heard an application by Korea Exchange Bank (the applicant/defendant) seeking leave to introduce expert affidavits in its appeal against a summary judgment obtained by Standard Chartered Bank (the respondent/plaintiff) for wrongful rejection of documents presented for payment under two letters of credit. The court, presided over by Andrew Ang JC, dismissed the application, finding that the applicant had made a tactical decision to proceed without expert evidence and that the proposed expert evidence was not relevant to the issues, which involved the construction of the letters of credit and the Uniform Customs and Practice for Documentary Credits 1993 (UCP 500) under Singapore law.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application dismissed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Standard Chartered Bank obtained summary judgment against Korea Exchange Bank for wrongful rejection of documents. The court addressed the construction of letters of credit and admissibility of expert evidence.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Standard Chartered Bank | Respondent, Plaintiff | Corporation | Application dismissed | Lost | |
| Korea Exchange Bank | Applicant, Defendant | Corporation | Application granted | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Andrew Ang | JC | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Toh Kian Sing | Rajah and Tann |
| Ian Teo | Rajah and Tann |
| Chew Kei-Jin | Tan Rajah and Cheah |
4. Facts
- Standard Chartered Bank obtained summary judgment against Korea Exchange Bank for wrongful rejection of documents.
- Korea Exchange Bank sought leave to introduce affidavits from two experts to enhance its chances of success in setting aside the summary judgment.
- The LCs called for copies of the seller’s commercial invoice, copies of the Independent Inspector’s Quantity Report at Loadport, copies of the seller’s Authorisation for Release of Product to Petaco and photocopies of the relevant bills of lading.
- The LCs are expressly subject to UCP 500.
- Korea Exchange Bank refused the LC Documents on the grounds that the amount was overdrawn and the product description differed from that in the LCs.
- Standard Chartered Bank re-presented the LC Documents to Korea Exchange Bank, amending the Seller’s Authorisation for Release to remove the alleged discrepancy.
- Korea Exchange Bank did not refuse or give any refusal notice in respect of the LC Documents as re-presented.
5. Formal Citations
- Standard Chartered Bank v Korea Exchange Bank, Suit 162/2004, SIC 6874/2004, [2005] SGHC 71
6. Timeline
| Date | Event |
|---|---|
| Standard Chartered Bank presented the LC Documents to Korea Exchange Bank. | |
| Korea Exchange Bank sent two refusal notices in respect of the LCs to Standard Chartered Bank. | |
| Standard Chartered Bank re-presented the LC Documents to Korea Exchange Bank. | |
| Application for summary judgment was filed. | |
| Korea Exchange Bank filed show cause affidavits. | |
| Standard Chartered Bank filed reply affidavit objecting to Song’s evidence. | |
| Summary judgment application was heard and determined. | |
| Korea Exchange Bank filed its Notice of Appeal. | |
| Korea Exchange Bank indicated its intention to file further affidavits. | |
| Korea Exchange Bank filed affidavits of Paul S Turner, Boris Kozolchyk, and Moiz Haider Sithawalla. | |
| Korea Exchange Bank's solicitors responded regarding expert evidence. | |
| Application dismissed. |
7. Legal Issues
- Admissibility of Expert Evidence
- Outcome: The court declined to exercise its discretion in favor of allowing admission of the further evidence.
- Category: Procedural
- Sub-Issues:
- Relevance of expert evidence
- Qualifications of expert witnesses
- Expert evidence as submissions in disguise
- Construction of Letters of Credit
- Outcome: The court held that the issue was strictly a question of construction of the LCs and the LC Documents.
- Category: Substantive
- Sub-Issues:
- Interpretation of contractual terms
- Meaning of ordinary English words in a contract
- Relevance of custom in trade
- Wrongful Rejection of Documents
- Outcome: The court did not make a ruling on the wrongful rejection of documents, as the application was regarding the admissibility of evidence.
- Category: Substantive
- Sub-Issues:
- Discrepancies in documents
- Compliance with UCP 500
- Obligation to issue fresh notices of refusal
8. Remedies Sought
- Setting aside summary judgment
9. Cause of Actions
- Breach of Contract
10. Practice Areas
- Commercial Litigation
- Banking
- Appeals
11. Industries
- Banking
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Ladd v Marshall | Not specified | No | [1954] 1 WLR 1489 | England and Wales | Cited as a case regarding conditions for adducing further evidence. |
| Lian Soon Construction Pte Ltd v Guan Qian Realty Pte Ltd | Court of Appeal | Yes | [1999] 2 SLR 233 | Singapore | Cited for the principle that a judge in chambers hearing an appeal from the registrar is entitled to treat the matter as though it came before him for the first time. |
| Mount Elizabeth Health Centre Pte Ltd v Mount Elizabeth Hospital Ltd | Not specified | Yes | [1993] 1 SLR 1021 | Singapore | Cited for the principle that the court does not take into account the evidence of witnesses in determining the meaning and interpretation of a document or provisions within a document when the meaning is clear. |
| Seaconsar Far East Ltd v Bank Markazi Jomhouri Islami Iran | Not specified | Yes | [1999] 1 Lloyd’s Rep 36 | England and Wales | Cited regarding the role of expert witnesses in interpreting ordinary English words in a written contract. |
| Bank of Credit & Commerce Hong Kong Ltd v Sonali Bank | Not specified | Yes | [1995] 1 Lloyd’s Rep 227 | Hong Kong | Cited for the principle that the governing law in the contract between the issuing bank and the confirming/negotiating bank is Singapore law. |
| Kredietbank NV v Sinotani Pacific Pte Ltd | Not specified | Yes | [1999] 3 SLR 288 | Singapore | Cited for the principle that the governing law in the contract between the issuing bank and the confirming/negotiating bank is Singapore law. |
| Krakauer v. Katz | Court of Appeal | Yes | [1954] 1 W.L.R. 278 | England and Wales | Cited regarding the court's discretion to refuse further evidence if a party has taken its stand on the evidence as it stood before the registrar. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5, 2004 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Uniform Customs and Practice for Documentary Credits 1993 (International Chamber of Commerce Publication No 500) | International |
15. Key Terms and Keywords
15.1 Key Terms
- Letters of credit
- LC Documents
- UCP 500
- Summary judgment
- Expert evidence
- Construction of contract
- Wrongful rejection
- Refusal notices
- Discrepancies
- Banking practice
15.2 Keywords
- letters of credit
- banking
- contract law
- expert evidence
- summary judgment
- UCP 500
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Letter of Credit Law | 85 |
| Contract Law | 75 |
| Banking and Finance | 65 |
| Commercial Law | 60 |
| Rules of construction | 60 |
| Evidence Law | 50 |
| Statutory Interpretation | 40 |
16. Subjects
- Banking
- Contract Law
- Civil Procedure
- Documentary Credits