Ouais Group Engineering and Contracting v Saipem SpA

Citation: EWHC 990 (Comm)

Nature of case:
Ouais Group sought interim injunction prohibiting Saipem from calling on several performance bonds and 2 advance payment guarantees, and requiring Saipem to withdraw any such calls which had already been made.  Ouais alleged that the parties had concluded a close-out agreement, and that the agreement had contained an implied term of which making or persisting in demands on bonds would be a breach.

Popplewell J refused the application.  Ouais had not established a strong case on the facts that any close-out agreement had been concluded.  Even if such an agreement had been made, the alleged term was not to be implied.  The express terms of clause 4 were such that it had no effect until Ouais had taken out a fresh performance bond to replace the old ones, and Ouais had not done so.  Nor was it possible to say with any certainty what such an implied term would require Saipem to do, and so no strong case was made out on the existence of the implied term.


Veronique Buehrlen KC

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