Abstract:
The ability to transfer rights of suit found in a bill of lading has served international traders well by giving them something to offer trade finance banks as security for trade credit facilities. By becoming the lawful holder of a bill of lading, a bank obtains the right to take delivery of the cargo or sue the carrier if the cargo cannot be delivered. However, the circumstances under which some banks became holders of bills of lading have recently come under scrutiny, and exposed them to the charge of bad faith in their attempts to enforce cargo claims against carriers. This comment discusses a number of cases involving such scenarios.