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DZP Recovers Funds From Unjustified Guarantee Call for OHL

DZP Recovers Funds From Unjustified Guarantee Call for OHL

Poland
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DZP has succeeded in the Regional Court in Gdansk for Obrascon Huarte Lain (OHL).

According to DZP, "in February 2013, [OHL] in consortium with two other entities carried out a project for Gdansk City Municipality - Gdanskie Inwestycje Komunalne sp. z o.o. entitled Construction of a road link between Gdansk Airport and the Port of Gdansk - Trasa Slowackiego, Task II, ul. Polokowa - Al. RzeczpospolitaSection. OHL provided a bank guarantee for proper performance of contract that clearly listed the circumstances in which it could be enforced. Less than a month before the guarantee expiry date, the municipal company sent the guarantor a demand for payment to be made under the guarantee but without indicating what OHL's alleged failure to perform its contractual obligations involved. The guarantor met the demand. After an attempt to resolve the dispute amicably failed, OHL filed a claim for payment with the Regional Court in Gdansk against the contracting authority for redress of damage. The court issued an order for payment to be made to OHL against which the municipal company appealed."

DZP persuaded the Court "that the contracting authority had had no grounds for demanding payment under the guarantee and thus that the municipal company was in breach of the contract, leading to damage to OHL." According to DZP, "on 30 January this year, the court generally upheld OHL's claim in full, though the judgment is not yet final and non-revisable."

The case was handled by DZP Associate Bartosz Karolczyk, working under the guidance of Partner Pawel Lewandowski.

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