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Note: In conjunction with a ten year commercial lease of property in Beach Haven, New Jersey, Amos Goaz, Yair Alon, and Michael Malka (Tenants) provided a standby letter of credit in favor of Gammal-Levy, LLC (Landlord) issued by Coastal Community Bank (Issuer) of Panama City Beach, Florida. As explained in the opinion, "[t]he letter of credit explicitly provides that 'Drafts must be presented at issuer's address shown above [Panama City Beach, Florida] on or before the expiration date,'" When Tenants defaulted on the lease, Landlord/ Beneficiary drew on the LC, presenting documents at the location required by the terms of the LC but Issuer dishonored.

When Landlord/Beneficiary sued Issuer and Tenants in federal court in New Jersey, Issuer moved to dismiss for lack of personal jurisdiction and for improper venue or for transfer. The US District Court for the District of New Jersey, Brown, CJ, transferred the venue to the US District Court for the Northern District of Florida.

The Judge noted that the only contact with New Jersey was that Landlord/Beneficiary was located in New Jersey whereas Issuer and the presentation occurred in the Northern District of Florida which is where all the Tenants were located. Landlord/ Beneficiary argued that there was proper nexus with New Jersey because the leased property was located in New Jersey. The Judge rejected this argument, noting that the action was related to a wrongful dishonor of the LC by a Florida bank that had no nexus to New Jersey.

[JEB]

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