Latest Articles

The court in Greenhill International Pty Ltd v Commonwealth Bank of Australia confirmed that silent confirmations of letters of credit fall outside the Uniform Customs and Practice for Documentary Credits 600 (UCP 600) and are governed purely by the express and implied terms agreed to by the paying bank and the beneficiary. However, the court in Fortis Bank SA/NV v Indian Overseas Bank confirmed that, despite silent confirmation, a nominated bank retains its rights against…
A June 2014 judgment by the UK court of appeal found that airlines are liable for compensation under European Council Regulation No. 261/2004 to passengers where a flight has been delayed on account of an unforeseeable aircraft technical problem. The Regulation and the court’s decision Regulation 261 provides for compensation in the event of passengers being denied boarding against their will by an airline or where a flight is cancelled. The airline must, in these…
2013 saw the emergence of low-cost airline FlySafair. In June 2013 Safair applied for a licence to allow it to operate a commercial scheduled air service. The licence was granted by the Air Service Licensing Council. Interdict An interdict was sought restraining Safair from operating the commercial service on grounds that more than 25% of the voting rights in the carrier were held by foreign persons. The court granted the interdict. The court relied on…
The London Court of International Arbitration (LCIA) has revised its arbitration rules to make the arbitration process more efficient using requirements that include timetables, guidelines, emergency procedures and consolidation processes. These changes to the LCIA arbitration rules are in effect from 1 October 2014 and track the similar amendments to the UNCITRAL and the ICC rules introduced in 2010 and 2012. Changes Significant changes to the LCIA rules include: an obligation on the tribunal to…
The appeal court has again reminded us that when the parties choose to submit their dispute to arbitration and the arbitrator’s decision is final without a right to appeal in an appeal tribunal, the grounds for setting aside the arbitrator’s award are very limited. Objections to the jurisdiction of the arbitrator or allegations of bias against the arbitrator must be raised at the beginning of the arbitration proceedings and not by a disgruntled loser after…
The courts have reaffirmed that if suspensive conditions in an agreement are not fulfilled timeously the agreement will not be binding on the parties. This is not cured by either party performing in terms of the agreement. Suspensive conditions and how they must be fulfilled must be precisely and carefully drafted. Facts of the case In Africast v Pangbourne Properties the parties concluded an agreement for the development of commercial property. This agreement contained a…