Case Commentary – Banks as the Authors of Their Own Misfortune

The article “Banks as the Authors of Their Own Misfortune” by Partner, Probin Dass, published in the [2025] SAL Practitioner 21, explores a series of recent Singapore court decisions concerning banks’ rights as holders of bills of lading in cargo misdelivery claims. Prompted by the collapse of oil trader Hin Leong Trading, the commentary examines how banks—having financed cargo purchases—sought to assert claims against carriers after the cargo had already been delivered without production of the bills. The courts assessed whether banks acted in good faith, whether the bills were “spent,” whether banks had authorised delivery, and whether carriers’ breaches actually caused the banks’ losses. Through analysis of cases such as Navig8 Ametrine, The STI Orchard, and The Maersk Katalin, the article highlights that while banks traditionally held strong positions as bill holders, emerging defences like the “causation” and “good faith” issues now complicate claims, underscoring the need for banks to strictly observe trade documentation practices.

Please click on this link to read the full case commentary.