Article

Procedural History: The Court granted the plaintiff a preliminary injunction of L/G against the defendant.

Facts: The plaintiff applied for a preliminary injunction to stop the third party, Bank of China Liaoning Branch, from paying the beneficiary the sum of Eur. 1,761,878.00 under No. GC0486114000653 L/G because of the fraud in the L/G. And the plaintiff gave the security for the injunction.

Legal Analysis:

Legal Issue(s): Whether the plaintiff can apply for the preliminary injunction?

Legal Rule(s): Art. 12 (5), Provisions on Several Issues in the Trial of Independent Letter of Guarantee Case：The court shall affirm that a fraud in L/G occurs when: …… (5) under the other circumstances, the beneficiary knew it had no rights on claiming a payment, but it still abused it’s right……

Disposition – for each legal issue:

  1. The Court seized the property offered by the plaintiff for guarantee.
  2. The Court granted the plaintiff a preliminary injunction of L/G against the defendant.

Holding & Reasoning for each issue: According to Art. 12 (5), Provisions on Several Issues in the Trial of Independent Letter of Guarantee Case, the court thought it reasonable to grant a preliminary injunction of the L/G.

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