§ 6A-5-111 - Remedies.
SECTION 6A-5-111
§ 6A-5-111 Remedies. – (a) If an issuer wrongfully dishonors or repudiates its obligation to pay moneyunder a letter of credit before presentation, the beneficiary, successor, ornominated person presenting on its own behalf may recover from the issuer theamount that is the subject of the dishonor or repudiation. If the issuer'sobligation under the letter of credit is not for the payment of money, theclaimant may obtain specific performance or, at the claimant's election,recover an amount equal to the value of performance from the issuer. In eithercase, the claimant may also recover incidental but not consequential damages.The claimant is not obligated to take action to avoid damages that might be duefrom the issuer under this subsection. If, although not obligated to do so, theclaimant avoids damages, the claimant's recovery from the issuer must bereduced by the amount of damages avoided. The issuer has the burden of provingthe amount of damages avoided. In the case of repudiation the claimant need notpresent any document.
(b) If an issuer wrongfully dishonors a draft or demandpresented under a letter of credit or honors a draft or demand in breach of itsobligation to the applicant, the applicant may recover damages resulting fromthe breach, including incidental but not consequential damages, less any amountsaved as a result of the breach.
(c) If an adviser or nominated person other than a confirmerbreaches an obligation under this chapter or an issuer breaches an obligationnot covered 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. To theextent 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 foundliable under subsection (a), (b), or (c) shall pay interest on the amount owedthereunder from the date of wrongful dishonor or other appropriate date.
(e) Reasonable attorney's fees and other expenses oflitigation must be awarded to the prevailing party in an action in which aremedy is sought under this chapter.
(f) Damages that would otherwise be payable by a party forbreach of an obligation under this chapter may be liquidated by agreement orundertaking, but only in an amount or by a formula that is reasonable in lightof the harm anticipated.