§ 25-5-111. Remedies. - North Carolina Statutes

§ 25‑5‑111. Remedies.

(a)        If an issuerwrongfully dishonors or repudiates its obligation to pay money under a letterof credit before presentation, the beneficiary, successor, or nominated personpresenting on its own behalf may recover from the issuer the amount that is thesubject of the dishonor or repudiation. If the issuer's obligation under theletter of credit is not for the payment of money, the claimant may obtainspecific performance or, at the claimant's election, recover an amount equal tothe value of performance from the issuer. In either case, the claimant may alsorecover incidental but not consequential damages. The claimant is not obligatedto take action to avoid damages that might be due from the issuer under thissubsection. If, although not obligated to do so, the claimant avoids damages,the claimant's recovery from the issuer must be reduced by the amount ofdamages avoided. The issuer has the burden of proving the amount of damagesavoided. In the case of repudiation the claimant need not present any document.

(b)        If an issuerwrongfully dishonors a draft or demand presented under a letter of credit orhonors a draft or demand in breach of its obligation to the applicant, theapplicant may recover damages resulting from the breach, including incidentalbut not consequential damages, less any amount saved as a result of the breach.

(c)        If an adviser ornominated person other than a confirmer breaches an obligation under thisArticle or an issuer breaches an obligation not covered in subsection (a) or(b) of this section, a person to whom the obligation is owed may recoverdamages resulting from the breach, including incidental but not consequentialdamages, less any amount saved as a result of the breach. To the extent of theconfirmation, a confirmer has the liability of an issuer specified in thissubsection and subsections (a) and (b) of this section.

(d)        An issuer,nominated person, or adviser who is found liable under subsection (a), (b), or(c) of this section shall pay interest on the amount owed thereunder from thedate of wrongful dishonor or other appropriate date.

(e)        Reasonableattorneys' fees and other expenses of litigation must be awarded to theprevailing party in an action in which a remedy is sought under this Article,and G.S. 6‑21.2 shall not apply.

(f)         Damages that wouldotherwise be payable by a party for breach of an obligation under this Articlemay be liquidated by agreement or undertaking, but only in an amount or by aformula that is reasonable in light of the harm anticipated. (1999‑73,s. 1.)