70A-5-111 - Remedies.
70A-5-111. Remedies.
(1) If an issuer wrongfully dishonors or repudiates its obligation to pay money under aletter of credit before presentation, the beneficiary, successor, or nominated person presenting onits own behalf may recover from the issuer the amount that is the subject of the dishonor orrepudiation. If the issuer's obligation under the letter of credit is not for the payment of money,the claimant may obtain specific performance or, at the claimant's election, recover an amountequal to the value of performance from the issuer. In either case, the claimant may also recoverincidental but not consequential damages. The claimant is not obligated to take action to avoiddamages that might be due from the issuer under this Subsection (1). If, although not obligated todo so, the claimant avoids damages, the claimant's recovery from the issuer must be reduced bythe amount of damages avoided. The issuer has the burden of proving the amount of damagesavoided. In the case of repudiation the claimant need not present any document.
(2) If an issuer wrongfully dishonors a draft or demand presented under a letter of creditor honors a draft or demand in breach of its obligation to the applicant, the applicant may recoverdamages resulting from the breach, including incidental but not consequential damages, less anyamount saved as a result of the breach.
(3) If an adviser or nominated person other than a confirmer breaches an obligation underthis chapter or an issuer breaches an obligation not covered in Subsection (1) or (2), a person towhom the obligation is owed may recover damages resulting from the breach, includingincidental but not consequential damages, less any amount saved as a result of the breach. To theextent of the confirmation, a confirmer has the liability of an issuer specified in this Subsection(3) and Subsections (1) and (2).
(4) An issuer, nominated person, or adviser who is found liable under Subsection (1), (2),or (3) shall pay interest on the amount owed thereunder from the date of wrongful dishonor orother appropriate date.
(5) Reasonable attorney's fees and other expenses of litigation must be awarded to theprevailing party in an action in which a remedy is sought under this chapter.
(6) Damages that would otherwise be payable by a party for breach of an obligationunder this chapter may be liquidated by agreement or undertaking, but only in an amount or by aformula that is reasonable in light of the harm anticipated.
Repealed and Re-enacted by Chapter 241, 1997 General Session