YUANDA (UK) CO LTD V MULTIPLEX CONSTRUCTION EUROPE LTD (FORMERLY KNOWN AS BROOKFIELD MULTIPLEX CONSTRUCTION EUROPE LTD) AND ANOTHER

[2020] EWHC 468 (TCC), Queen’s Bench Division, Technology and Construction Court, Mr Justice Fraser, 28 February 2020

Contracts – Guarantee – Demand – Whether guarantee a performance bond or an on-demand bond – Requirements for valid call

Yuanda (UK) Co Ltd sought the continuation of an injunction it had obtained against both Multiplex Construction Europe Ltd and the second defendant, Australia and New Zealand Banking Group Ltd, preventing the bank from paying out, on demand, to Multiplex the sum of £4,411,490.70 said by Multiplex to have fallen due to it under a guarantee issued by the bank in respect of a construction project. Multiplex was the main contractor and Yuanda a sub-contractor of the project. Delays in the project were on Multiplex’s view attributable to Yuanda, which denied that this was so. Multiplex agreed a settlement with the construction project employer. The guarantee had been obtained by Yuanda from the bank as security for its performance of the subcontract. The demand, or call, was made by Multiplex and dated 17 January 2020. Yuanda immediately obtained the injunction.