American Express Bank Ltd. v. Banco Español De Crédito, S.A.

MEMORANDUM OPINION AND ORDER

RICHARD J. HOLWELL, District Judge:

This case is about international demand guaranties, a form of commercial credit used to secure the performance of international construction contracts. In particular, it involves a bank’s attempts to enforce another bank’s counterguaranties, despite the fact that it has refused to pay the primary guaranties on the ground that demand was made in bad faith.

The banks’ dispute originates in two contracts to build power substations in Pakistan. The contractor, a Spanish company, claims that it fully performed the contracts. The…