283 F. 103 (2nd Cir. 1922), 204, International Banking Corporation v. Irving Nat. Bank

Docket Nº:204, 205.
Citation:283 F. 103
Party Name:INTERNATIONAL BANKING CORPORATION v. IRVING NAT. BANK (two cases).
Case Date:May 08, 1922
Court:United States Courts of Appeals, Court of Appeals for the Second Circuit
 
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Page 103

283 F. 103 (2nd Cir. 1922)

INTERNATIONAL BANKING CORPORATION

v.

IRVING NAT. BANK (two cases).

Nos. 204, 205.

United States Court of Appeals, Second Circuit.

May 8, 1922

The essential fact findings made by the trial judge are as follows:

November 7, 1919, Irving Trust Company duly issued to one Liberman a letter of credit as follows:

'We hereby authorize K. Kobayashi, Yokohama, Japan, to draw on Irving Trust Company, New York, for account of Philip Liberman, New York, at four months after sight, for any sum or sums not exceeding in the aggregate thirty-two thousand five hundred dollars, U.S. currency, against complete negotiable set of shipping documents covering 500 pcs. Fuji silk as per sample No. 400 weight about 16mm. each piece 33"x50 yds, to be made as per our designs and total width of stripes not more than 50% of the material width. Price $65.00 U.S. gold per piece c.i.f. New York for shipment to New York. Marine insurance and also war risk insurance to be effected by shippers. Drafts under this credit are to be drawn in duplicate and negotiated on or before May 20, 1920, and to be enfaced, 'Against I.T. Co.'s L/C No. 2110 dated New York, November 7th, 1919,' and the amounts thereof to be written off on the back of this credit. The negotiating banker must send duplicate advice of such drawings promptly to Irving Trust Company, New York, accompanied by negotiable bills of lading (all, except one of the set issued), insurance certificates if the shipper insures, consular invoice and commercial invoice. Bills of lading are to be issued to the order of Irving Trust Company, New York, notify Philip Liberman, New York. All remaining documents, completing the sets originally issued, must be sent by negotiating bankers to Irving Trust Company, New York, and we hereby agree with the drawers, indorsers, and bona fide holders of drafts drawn under and in compliance with the terms of this credit that the same shall be duly accepted upon presentations and paid at maturity.

Irving Trust Company.'

Page 104

April 27, 1920, Kobayashi drew a draft pursuant to said letter of credit against a complete set of shipping documents, which draft in common form required Irving Trust Company to pay to the order of plaintiff a certain sum of money 'for value received and place the same to the account of silk goods for account of Mr. Philip Liberman.'

On the same day plaintiff duly acquired said draft and accompanying documents for value. The shipping documents referred to consisted of negotiable bills of lading, insurance certificates, and consular and commercial invoices, and said invoices stated that the goods covered thereby were 'striped Fuji silk 33 in. ex. 50 yard. quality as per your sample 400, weight sixteen (16) mome.'

Said invoices also contained an enumeration of the cases of silk by number and reference to the patterns contained in each case, together with the quantity 'in pieces' in each consignment. But no invoice or other shipping document contained in words or substance the statement that said silk was 'made as per our designs and total width of stripes not more than 50% of the material width.'

The Irving Trust Company is the same corporation as the defendant Irving National Bank.

The trial court held as matter of fact that no invoice or other shipping...

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