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Note: Rich International Group Corporation (Purchaser) sued Soleil Capitale Corporation (Promisor) for failure to issue a letter of credit in the amount of USD 25 million for which it had promised to pay a fee of USD 1.25 million. Promisor moved for summary judgement, which Ostrager, J., (Trial Judge) denied. The Supreme Court of New York, Appellate Division, First Department, Friedman, J.P., Richter, Saxe, Moskowitz, Kapnick, JJ., in a per curiam opinion, affirmed.

The opinion observed that the Promisor did not meet its burden to prove it had issued a USD 25 million letter of credit to Purchaser. The opinion noted that Purchaser’s admission that the document was entitled a “letter of credit” was not sufficient to entitle Promisor to summary judgment in light of “the provisions in the document that create a question as to its viability for use” and the inability of Purchaser to obtain an authentication. The opinion further noted that the independence principle did not bar Purchaser’s claim because no one attempted to draw on the letter of credit.

[ARB/MMY]

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