§ 34.1-5-111 — Remedies

(a) If an issuer wrongfully dishonors or repudiates its
obligation to pay money under a letter of credit before
presentation, the beneficiary, successor, or nominated person
presenting on its own behalf may recover from the issuer the
amount that is the subject of the dishonor or repudiation. If
the issuer's obligation under the letter of credit is not for
the payment of money, the claimant may obtain specific
performance or, at the claimant's election, recover an amount
equal to the value of performance from the issuer. In either
case, the claimant may also recover incidental but not
consequential damages. The claimant is not obligated to take
action to avoid damages that might be due from the issuer under
this subsection. If, although not obligated to do so, the
claimant avoids damages, the claimant's recovery from the issuer
must be reduced by the amount of damages avoided. The issuer
has the burden of proving the amount of damages avoided. In the
case of repudiation the claimant need not present any document.
(b) If an issuer wrongfully dishonors a draft or demand
presented under a letter of credit or honors a draft or demand
in breach of its obligation to the applicant, the applicant may
recover damages resulting from the breach, including incidental
but not consequential damages, less any amount saved as a result
of the breach.
(c) If an adviser or nominated person other than a
confirmer breaches an obligation under this article 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
recover damages resulting from the breach, including incidental
but not consequential damages, less any amount saved as a result
of the breach. To the extent of the confirmation, a confirmer
has the liability of an issuer specified in this subsection 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 the date of
wrongful dishonor or other appropriate date.
(e) Reasonable attorney's fees and other expenses of
litigation shall be awarded to the prevailing plaintiff in an
action in which a remedy is sought under this article.
(f) Damages that would otherwise be payable by a party for
breach of an obligation under this article may be liquidated by
agreement or undertaking, but only in an amount or by a formula
that is reasonable in light of the harm anticipated.