Manx Electricity Authority v J P Morgan Chase Bank: CA 3 Oct 2003

The claimant sought to appeal an order striking out its claim against the defendant under a performance bond. The defendant denied that the demand was valid, saying it did not allege a current breach of the contract.
Held: The point upon which the strike out action succeeded was flawed. The breach continued, and the obligations continued despite repudiation of the contract guaranteed. The points required to be determined after full argument, and the strike out was set aside.


Lord Justice Thorpe, Lord Justice Chadwick and Lord Justice Rix


[2003] EWCA Civ 1324




England and Wales


CitedEdward Owen Engineering Ltd v Barclays Bank International Ltd CA 1978
Performance guarantees are effectively obligations to pay on demand within the terms of the guarantee, irrespective of the rights and wrongs of any dispute between beneficiary and principal under the terms of their separate contract, subject only to . .
CitedBolivinter Oil SA v Chase Manhattan Bank NA 1984
The court emphasised ‘the great and fundamentally important separation’ between bankers and re-insurers. . .
CitedPhoto Production Ltd v Securicor Transport Ltd HL 14-Feb-1980
Interpretation of Exclusion Clauses
The plaintiffs had contracted with the defendants for the provision of a night patrol service for their factory. The perils the parties had in mind were fire and theft. A patrol man deliberately lit a fire which burned down the factory. It was an . .
Lists of cited by and citing cases may be incomplete.


Updated: 08 June 2022; Ref: scu.186547