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Copyright © International Chamber of Commerce (ICC). All rights reserved. ( Source of the document: ICC Digital Library )
1996 LC CASE SUMMARIES 640 N.Y.S.2d 32 (N.Y. App. Div. 1996)
Topics:
Confirmer: not liable to applicant.
Type of Lawsuit:
Applicant sued confirmer for breach of contract and failure to use reasonable care in wrongfully honoring L/C presentation.
Principals:
Plaintiff/Applicant: Polymer Trading, S.A.R.L.;
Defendant/Confirmer: CIC-Union Europeenne.
Underlying Transaction:
Not stated.
LC:
Commercial L/C for unknown amount. Subject to UCP 400.
Procedural History:
The Supreme Court of New York, Appellate Division, First Department, by memorandum opinion affirmed the judgment of the Supreme Court, New York County, Herman, J., which granted the confirmer's Motion for Summary Judgment.
Rule:
Applicant could not sue confirmer for breach of contract because no contract exists between the two parties and the confirmer does not owe the applicant a duty to use reasonable care in the examination of documents.
Article
Factual Summary: Applicant brought an action against the confirmer for breach of contract and failure to use reasonable care in the examination of the documents.
Legal Analysis:
1. Privity: The appellate court held that the applicant could not sue the confirmer for breach of contract because there was no privity of contract between the applicant and the confirmer.
2. Reasonable Care; UCP 400 Article 23: The appellate court found that the confirmer owed no duty to the applicant to use reasonable care in the examination of the documents. Moreover, the court noted that the confirmer had examined the documents on their face and was not responsible for defects in the goods.
©1997 INSTITUTE OF INTERNATIONAL BANKING LAW & PRACTICE
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.