Article

Facts:

The plaintiff and the defendant had dispute on the guarantee agreement. The trial court accepted this case on Nov. 1, 2016. However, on Nov. 24, 2017, the plaintiff applied to withdraw the case.

Legal Issue(s):

Whether the trial court has jurisdiction on this case?

Legal Rule(s):

Art. 21 (1), Provisions on Several Issues in the Trial of Independent Letter of Guarantee Case，Any dispute arising out of the independent L/G between the beneficiary and the issuer shall be governed by a People's Court where the place of domicile or the defendant's domicile is located and the independent undertaking is stated to be under the jurisdiction of other courts or submitted to arbitration. Where the parties assert that the jurisdictional court is determined or submitted to arbitration under the terms of the dispute settlement of the basic transaction contract, the people's court shall not support it.

Disposition – for each legal issue:

The court affirmed the court had jurisdiction on this case and granted the plaintiff withdrawing the case.

Holding & Reasoning for each issue:

The guarantee agreement in this case explicitly agreed when a dispute appeared, the people’s court where the bearer’s domicile had jurisdiction. Therefore, the trial court had jurisdiction on this case.

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The views expressed in this Case Summary are those of the Institute of International Banking Law and Practice and not necessarily those of the ICC or Coastline Solutions.