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Note: B.P. Staff sought temporarily to enjoin Guarantee Insurance Co. and JP Morgan (Issuer) from drawing on and honoring a standby letter of credit posted to assure payments of premiums and deductables under workman's compensation policies. The trial court refused to grant the relief. On appeal, the Court of Appeals of South Carolina, Hearn, C.J., Pieper, and Lockemy, JJ., in a per curiam opinion, affirmed.

The appellate court cited various cases to the effect that an injunction is discretionary and the equitable requirements that must be met by one seeking such relief, including irreparable harm and the lack of an adequate remedy at law. It failed, however, to mention the requirement of US Revised UCC Section 5-109 (Fraud and Forgery) that there must be a finding that the applicant is more likely than not to prove the existence of material fraud on the by the beneficiary on the issuer or the applicant.

Comment: While the result cannot be faulted since injunctive relief was not granted, it is surprising that the principal authority for the denial of the relief sought was not cited, namely Revised UCC Section 5-109. [JEB]

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