Ian D. Collins

The appellant bank issued an irrevocable and transferable letter of credit.

The letter of credit was transferred to the respondent, who subsequently presented documents for payment.

The appellant refused to pay, citing discrepancies in the documents and a lack of notice regarding the transfer.

The motions judge granted summary judgment in favour of the respondent on liability and ordered the appellant to pay costs, including a Sanderson order for the co-defendant's costs.

The Court of Appeal dismissed the appeal, finding that notice of the transfer was not required under the terms of the credit or the UCP 500, and that the documentary discrepancies were minor and immaterial.

The Court also upheld the costs awards, including the Sanderson order.

The moving party brought a motion to quash an appeal of an order directing it to pay principal and accrued interest to the respondents and to pay further sums into court.

The moving party argued the order was interlocutory and that the respondents were estopped from appealing because they had derived a benefit from the order.

The Court of Appeal dismissed the motion to quash, finding that the order was final in respect of the respondents' secured priority position.

The Court also held that the respondents were not estopped from appealing, as they had complied with the order and immediately notified the moving party of their intention to appeal.