{"data":{"id":"us-ky/krs-355.5-111","jurisdiction":"us-ky","citation":"KRS 355.5-111","heading":"Remedies.","body":"(1) If an issuer wrongfully dishonors or repudiates its obligation to pay money under a\nletter of credit before presentation, the beneficiary, successor, or nominated person\npresenting on its own behalf may recover from the issuer the amount that is the\nsubject of the dishonor or repudiation. If the issuer's obligation under the letter of\ncredit is not for the payment of money, the claimant may obtain specific\nperformance or, at the claimant's election, recover an amount equal to the value of\nperformance from the issuer. In either case, the claimant may also recover incidental\nbut not consequential damages. The claimant is not obligated to take action to avoid\ndamages that might be due from the issuer under this subsection. If, although not\nobligated to do so, t he claimant avoids damages, the claimant's recovery from the\nissuer must be reduced by the amount of damages avoided. The issuer has the\nburden of proving the amount of damages avoided. In the case of repudiation the\nclaimant need not present any document.\n(2) If an issuer wrongfully dishonors a draft or demand presented under a letter of credit\nor honors a draft or demand in breach of its obligation to the applicant, the applicant\nmay recover damages resulting from the breach, including incidental but not\nconsequential damages, less any amount saved as a result of the breach.\n(3) If an adviser or nominated person other than a confirmer breaches an obligation\nunder this article or an issuer breaches an obligation not covered in subsection (1) or\n(2) of this section, a person to whom the obligation is owed may recover damages\nresulting from the breach, including incidental but not consequential damages, less\nany amount saved as a result of the breach. To the extent of the confirmation, a\nconfirmer has the liab ility of an issuer specified in this subsection and subsections\n(1) and (2) of this section.\n(4) An issuer, nominated person, or adviser who is found liable under subsection (1),\n(2), or (3) of this section shall pay interest on the amount owed thereunder from the\ndate of wrongful dishonor or other appropriate date.\n(5) Reasonable attorney's fees and other expenses of litigation must be awarded to the\nprevailing party in an action in which a remedy is sought under this article.\n(6) Damages that would otherw ise be payable by a party for breach of an obligation\nunder this article may be liquidated by agreement or undertaking, but only in an\namount or by a formula that is reasonable in light of the harm anticipated.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33603","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:45Z","sha256":"81d0733b4a873eabb7c088ae6ed39431983f01fa5b070232ce8f30710e75a480","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.5-110","next":"us-ky/krs-355.5-112"},"notice":"GroundRules: Original legal text. Not legal advice."}