Article

Prior History: Intrinsic Values Corp. v. Superintendcia De Administracion Tributaria, 2002 Fla. App. LEXIS 1154 abstracted at 2003 Annual Survey 201.

Note: Intrinsic Values Corp., Beneficiary, presented on two LCs and Superintendcia De Administracion Tributaria, Issuer, failed to honor. Applicant was awarded an injunction in Guatemala preventing Issuer from honoring the LCs. Applicant also sought and obtained an injunction in Florida preventing confirming banks First Union National Bank and Barclays Bank PLC from honoring the LCs

The trial court found that Issuer properly refused honor upon Beneficiary's presentation, reasoning that the documents which Beneficiary presented to bank Intrinsic Values Corp. v. Superintendcia De Administracion Tributaria 840 So.2d 448 (Fla. App. 3 Dist., 2003) [U.S.A.] "did not precisely conform to the letter of credit. The non-conforming presentments were properly rejected by the banks for non-compliance with the letter of credit." In addition, the trial court pointed out that the LC expired shortly after dishonor by Issuer. Beneficiary sought to increase the US$1,000 injunction bond to protect its rights. The Circuit Court, Miami- Dade County, Florida, Hubbart, J., denied the request and Beneficiary appealed.

The Florida District Court of Appeals, Third District, Schwartz, C.J., Goderich, J., and Nesbitt, J., in a per curium opinion, affirmed the Circuit Court's decision refusing to increase the injunction bond required of Issuer, ruling that Issuer's refusal of Beneficiary's presentation was proper and therefore increasing the injunction bond was unnecessary.

[JEB/ees]

COPYRIGHT OF THE INSTITUTE OF INTERNATIONAL BANKING LAW & PRACTICE

The views expressed in this Case Summary are those of the Institute of International Banking Law and Practice and not necessarily those of ICC or the other partners in DC-PRO.