Remedies and damages for wrongful dishonor or breach of obligation.
400.5-111. (a) If an issuer wrongfully dishonors or repudiates itsobligation to pay money under a letter of credit before presentation, thebeneficiary, successor or nominated person presenting on its own behalf mayrecover from the issuer the amount that is the subject of the dishonor orrepudiation. If the issuer's obligation under the letter of credit is notfor the payment of money, the claimant may obtain specific performance or,at the claimant's election, recover an amount equal to the value ofperformance from the issuer. In either case, the claimant may also recoverincidental but not consequential damages. The claimant is not obligated totake action to avoid damages that might be due from the issuer under thissubsection. If, although not obligated to do so, the claimant avoidsdamages, the claimant's recovery from the issuer must be reduced by theamount of damages avoided. The issuer has the burden of proving the amountof damages avoided. In the case of repudiation the claimant need notpresent any document.
(b) If an issuer wrongfully dishonors a draft or demand presentedunder a letter of credit or honors a draft or demand in breach of itsobligation to the applicant, the applicant may recover damages resultingfrom the breach, including incidental but no consequential damages, lessany amount saved as a result of the breach.
(c) If an adviser or nominated person other than a confirmer breachesan obligation under this article or an issuer breaches an obligation notcovered in subsection (a) or (b), a person to whom the obligation is owedmay recover damages resulting from the breach, including incidental but notconsequential damages, less any amount saved as a result of the breach. Tothe extent of the confirmation, a confirmer has the liability of an issuerspecified in this subsection and subsections (a) and (b).
(d) An issuer, nominated person or adviser who is found liable undersubsection (a), (b) or (c) shall pay interest on the amount owed thereunderfrom the date of wrongful dishonor or other appropriate date.
(e) Reasonable attorney's fees and other expenses of litigation mustbe awarded to the prevailing party in an action in which a remedy is soughtunder this article.
(f) Damages that would otherwise be payable by a party for breach ofan obligation under this article may be liquidated by agreement orundertaking, but only in an amount or by a formula that is reasonable inlight of the harm anticipated.
(L. 1963 p. 503 § 5-111, A.L. 1997 S.B. 6)
*No continuity with § 400.5-111 as repealed by L. 1997 S.B. 6 § A.
Remedies and damages for wrongful dishonor or breach of obligation.
400.5-111. (a) If an issuer wrongfully dishonors or repudiates itsobligation to pay money under a letter of credit before presentation, thebeneficiary, successor or nominated person presenting on its own behalf mayrecover from the issuer the amount that is the subject of the dishonor orrepudiation. If the issuer's obligation under the letter of credit is notfor the payment of money, the claimant may obtain specific performance or,at the claimant's election, recover an amount equal to the value ofperformance from the issuer. In either case, the claimant may also recoverincidental but not consequential damages. The claimant is not obligated totake action to avoid damages that might be due from the issuer under thissubsection. If, although not obligated to do so, the claimant avoidsdamages, the claimant's recovery from the issuer must be reduced by theamount of damages avoided. The issuer has the burden of proving the amountof damages avoided. In the case of repudiation the claimant need notpresent any document.
(b) If an issuer wrongfully dishonors a draft or demand presentedunder a letter of credit or honors a draft or demand in breach of itsobligation to the applicant, the applicant may recover damages resultingfrom the breach, including incidental but no consequential damages, lessany amount saved as a result of the breach.
(c) If an adviser or nominated person other than a confirmer breachesan obligation under this article or an issuer breaches an obligation notcovered in subsection (a) or (b), a person to whom the obligation is owedmay recover damages resulting from the breach, including incidental but notconsequential damages, less any amount saved as a result of the breach. Tothe extent of the confirmation, a confirmer has the liability of an issuerspecified in this subsection and subsections (a) and (b).
(d) An issuer, nominated person or adviser who is found liable undersubsection (a), (b) or (c) shall pay interest on the amount owed thereunderfrom the date of wrongful dishonor or other appropriate date.
(e) Reasonable attorney's fees and other expenses of litigation mustbe awarded to the prevailing party in an action in which a remedy is soughtunder this article.
(f) Damages that would otherwise be payable by a party for breach ofan obligation under this article may be liquidated by agreement orundertaking, but only in an amount or by a formula that is reasonable inlight of the harm anticipated.
(L. 1963 p. 503 § 5-111, A.L. 1997 S.B. 6)
*No continuity with § 400.5-111 as repealed by L. 1997 S.B. 6 § A.
Remedies and damages for wrongful dishonor or breach of obligation.
400.5-111. (a) If an issuer wrongfully dishonors or repudiates itsobligation to pay money under a letter of credit before presentation, thebeneficiary, successor or nominated person presenting on its own behalf mayrecover from the issuer the amount that is the subject of the dishonor orrepudiation. If the issuer's obligation under the letter of credit is notfor the payment of money, the claimant may obtain specific performance or,at the claimant's election, recover an amount equal to the value ofperformance from the issuer. In either case, the claimant may also recoverincidental but not consequential damages. The claimant is not obligated totake action to avoid damages that might be due from the issuer under thissubsection. If, although not obligated to do so, the claimant avoidsdamages, the claimant's recovery from the issuer must be reduced by theamount of damages avoided. The issuer has the burden of proving the amountof damages avoided. In the case of repudiation the claimant need notpresent any document.
(b) If an issuer wrongfully dishonors a draft or demand presentedunder a letter of credit or honors a draft or demand in breach of itsobligation to the applicant, the applicant may recover damages resultingfrom the breach, including incidental but no consequential damages, lessany amount saved as a result of the breach.
(c) If an adviser or nominated person other than a confirmer breachesan obligation under this article or an issuer breaches an obligation notcovered in subsection (a) or (b), a person to whom the obligation is owedmay recover damages resulting from the breach, including incidental but notconsequential damages, less any amount saved as a result of the breach. Tothe extent of the confirmation, a confirmer has the liability of an issuerspecified in this subsection and subsections (a) and (b).
(d) An issuer, nominated person or adviser who is found liable undersubsection (a), (b) or (c) shall pay interest on the amount owed thereunderfrom the date of wrongful dishonor or other appropriate date.
(e) Reasonable attorney's fees and other expenses of litigation mustbe awarded to the prevailing party in an action in which a remedy is soughtunder this article.
(f) Damages that would otherwise be payable by a party for breach ofan obligation under this article may be liquidated by agreement orundertaking, but only in an amount or by a formula that is reasonable inlight of the harm anticipated.
(L. 1963 p. 503 § 5-111, A.L. 1997 S.B. 6)
*No continuity with § 400.5-111 as repealed by L. 1997 S.B. 6 § A.
