Creditor’s Ability to Recover in the UK From Debt Owed Under Letters of Credit


Your client has a judgment or arbitral award and becomes aware of an unrelated contract where the judgment debtor is to be paid through letters of credit issued by a bank branch in the UK. Can you use that as a source of recovery? In the recent case of Taurus Petroleum Ltd v. State Oil Marketing Company of the Ministry of Oil, Iraq, (2017) UKSC 64, the court said “yes”.