Simic v New South Wales Land and Housing Corporation [2015] NSWCA 413

Court of Appeal Supreme Court New South Wales Medium Neutral Citation: Simic v New South Wales Land and Housing Corporation [2015] NSWCA 413 Hearing dates: 12 October 2015 Date of orders: 18 December 2015 Decision date: 18 December 2015 Before: Bathurst CJ at [1]; Ward JA at [2]; Emmett AJA at [3] Decision: 1 Appeal be dismissed with costs.

2 The first cross-appeal (filed by the second respondent to the appeal) and the second cross-appeal (filed by the first respondent to the appeal) be dismissed.

3 The costs of the cross-appeals be treated as the parties' costs of the appeal. Catchwords: CONTRACT – letters of credit – whether a misdescription of the beneficiary of a bank guarantee entitled the bank to refuse to pay out the credit – whether regard could be had to the underlying contract to confirm the correct description of the beneficiary – discussion of the scope of the autonomy principle and of the principle of strict compliance, as they apply to letters of credit Legislation Cited: Government Sector Employment Act 2013 (NSW), Sch 4 Housing Act 2001 (NSW), ss 6, 7, 8, 12 Public Sector Employment and Management Act 2002 (NSW), s 104 Cases Cited: Australasian Conference Association Ltd v Mainline Constructions Pty Ltd (in liq) (1978) 141 CLR 335 Bank of Montreal v Federal National Bank & Trust Co of Shawnee 622 F Supp 6 (D Okla, 1984) Banque de l'Indochine et de Suez SA v J H Rayner (Mincing Lane) Ltd [1983] QB 711 Boral Formwork v Action Makers [2003] NSWSC 713 Burleigh Forest Estate Management Pty Ltd v Cigna Insurance Australia Ltd [1992] 2 Qd R 54 Canty v PaperlinX Australia Pty Ltd [2014] NSWCA 309 Chaina v Lavaro Homes Pty Limited [2008] NSWCA 353 Clough Engineering Ltd v Oil and Natural Gas Corporation Ltd [2008] FCAFC 136 Commercial Banking Co of Sydney Ltd v Jalsard Pty Ltd [1973] AC 279 Contronic Distributors Pty Ltd (receiver & manager appointed) v Bank of New South Wales [1984] 3 NSWLR 110 Dessaleng Beyene and Jean M Hanson v Irving Trust Co 762 F 2d 4 (2nd Cir, 1985) Edward Owen Engineering Ltd v Barclays Bank International Ltd [1978] QB 159 Electricity Generation Corporation v Woodside Energy Ltd [2014] HCA 7; 251 CLR 640 Equitable Trust Co of New York v Dawson Partners Ltd (1926) 24 Ll L Rep 261 Equitable Trust Co of New York v Dawson Partners Ltd (1926) 25 Ll L Rep 90 Equitable Trust Co of New York v Dawson Partners Ltd (1927) 27 Ll L Rep 49 Forestal Mimosa Ltd v Oriental Credit Ltd [1986] 2 All ER 400 Fortis Bank SA/NV v Indian Overseas Bank [2010] 1 Lloyd's Rep 227 Gian Singh & Co Ltd v Banque de l'Indochine [1974] 1 WLR 1234 Griffin Energy Group Pty Ltd v ICICI Bank Ltd [2015] NSWCA 29 Hing Yip Hing Fat Co Ltd v Daiwa Bank Ltd [1991] 2 HKLR 35 Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26 Hortico (Australia) Pty Ltd v Energy Equipment Co (Australia) Pty Ltd (1985) 1 NSWLR 545 Ideas Plus Investments Ltd v National Australia Bank Ltd [2006] WASCA 215 IE Contractors Ltd v Lloyds Bank Plc [1990] 2 Lloyd's Rep 496 Inflatable Toy Company Pty Ltd v State Bank of New South Wales (1994) 34 NSWLR 243 Insurance Exchange of Australasia Group v Dooley [2000] NSWCA 159; 50 NSWLR 222 JH Rayner and Co Ltd v Hambro's Bank Ltd [1943] 1 KB 37 Kredietbank Antwerp v Midland Bank plc [1999] 1 All ER (Comm) 801 Maggbury Pty Ltd v Hafele Australia Pty Ltd [2001] HCA 70; 210 CLR 181 Midland Bank Ltd v Seymour [1955] 2 Lloyd's Rep 147 Moralice (London) Ltd v E D & F Man [1954] 2 Lloyd's Rep 526 Mount Bruce Mining Pty Ltd v Wright Prospecting Pty Ltd [2015] HCA 37 National Australia Bank Limited v Clowes [2013] NSWCA 179 Rainy Sky SA v Kookmin Bank [2011] UKSC 50; 1 WLR 2900 Seaconsar Far East Ltd v Bank Markazi Jomhouri Islami Iran [1993] 1 Lloyd's Rep 236 Siporex Trade SA v Banque Indosuez [1982] 2 Lloyd's Rep 146 Soproma SpA v Marine and Animal By-Products Corporation [1966] 1 Lloyd's Rep 367 United Bank Ltd v Banque Nationale de Paris [1991] 2 SLR(R) 60 United City Merchants (Investments) Ltd v Royal Bank of Canada [1983] 1 AC 168 United Dominions Trust (Commercial) Limited v Eagle Aircraft Services Ltd [1968] 1 All ER 104 Westpac Banking Corporation v Commonwealth Steel Co Ltd [1983] 1 NSWLR 735 Westpac Banking Corporation v 'Stone Gemini' [1999] FCA 434 Wood Hall Ltd v The Pipeline Authority (1979) 141 CLR 443 Texts Cited: E Adodo, Letters of Credit: The Law and Practice of Compliance (Oxford University Press, 2014) P Ellinger, 'The Doctrine of Strict Compliance: Its Development and Current Construction' in F Rose (ed), Lex Mercatoria: Essays on International Commercial Law in Honour of Francis Reynolds (LLP, 2000) N Enonchong, The Independence Principle of Letters of Credit and Demand Guarantees (Oxford University Press, 2011) A Malek and D Quest, Jack: Documentary Credits (4th ed 2009, Tottel) A Mugasha, The Law of Letters of Credit and Bank Guarantees (Federation Press, 2003) R Zimmerman, The Law of Obligations: Roman Foundations of the Civilian Tradition (Juta & Co, 1990)