American Nat. Bank & Trust Co. v. Banco Nacional De Nicaragua, Inc., 1 Div. 17.

Citation238 Ala. 128,189 So. 191
Decision Date11 May 1939
Docket Number1 Div. 17.
PartiesAMERICAN NAT. BANK & TRUST CO. v. BANCO NACIONAL DE NICARAGUA, INC.
CourtSupreme Court of Alabama

Rehearing Denied June 8, 1939.

Appeal from Circuit Court, Mobile County; J. Blocker Thornton Judge.

Action by Banco Nacional De Nicaragua, Incorporated, against American National Bank & Trust Company. From a judgment for plaintiff, defendant appeals.

Affirmed.

Thos A. Hamilton and J. Gaillard Hamilton, both of Mobile, for appellant.

Smith &amp Johnston and Chas. B. Arendall, Jr., all of Mobile, for appellee.

KNIGHT Justice.

This is the second appeal in this case. American National Bank & Trust Co. v. Banco Nacional De Nicaragua, 231 Ala. 614, 166 So. 8. However, the case presented by the record on this appeal is quite different from the case made by the record on the former appeal, both as to pleadings and evidence.

Each of the trials in the circuit court resulted in a verdict for the plaintiff, appellee here. In the discussion of this case, on this appeal, we shall for convenience refer to the appellant as defendant, and the appellee as plaintiff.

After the reversal and remandment of the case on the former appeal, the plaintiff amended its complaint by adding two additional counts--counts 5 and 6--and plaintiff also filed, in addition to a general replication to plea 8, as amended, and as pleaded separately to counts 1, 2, 3 and 4, two special replications, numbered 2 and 3. Plea 8 as amended is set out at length in the report of this case on former appeal.

The court sustained a demurrer to replication No. 3, and this replication, therefore, went out of the case.

The defendant, by written motions, moved to strike, separately and severally, counts 5 and 6, and also to strike certain parts of these added counts, but each of said motions was overruled by the court, and in each instance the defendant duly reserved an exception.

After the court had refused to strike counts 5 and 6, or any of the parts of said counts, the defendant demurred to each of said counts, and these demurrers were overruled by the court.

To counts 5 and 6, separately and severally, in addition to the general issue, the defendant filed a number of special pleas, including plea 8, as amended, theretofore filed to counts 1, 2, 3 and 4.

The court sustained plaintiff's demurrer to pleas E and F, but overruled the same as to pleas C and D. Plea E was addressed to added count 5, while F was addressed to count 6. Pleas C and D were addressed to both counts 5 and 6, separately and severally.

Added counts 5 and 6 are predicated upon the identical letter of credit of December 28, 1933, issued to J. B. Ardoyno, and the reinstatement thereof on January 23, 1934, set forth in original counts 1, 2, 3 and 4, and seek to recover of the defendant the amount of $9000, alleged to be due on four drafts drawn upon defendant by one J. B. Ardoyno under said letter of credit and the reinstatements thereof under date of January 23, 1934, and which it is alleged the plaintiff cashed or purchased pursuant to the January 23, 1934, reinstatement of said letter of credit, and the letter written to plaintiff at the time of the issuance of said letter of credit of December 28, 1933. A copy of the letter of credit issued to said J. B. Ardoyno under date of December 28, 1933, and a copy of the letter written by defendant to plaintiff under same date, advising plaintiff of the issuance of said letter of credit to said Ardoyno, and making certain suggestions and directions, are also attached to, and made a part of, said counts 5 and 6. These documents are also set out in full in the report of the case on former appeal, and we will not, therefore, again set them out on this appeal.

In added count 5 plaintiff, by way of inducement, and to show the former course of dealings between plaintiff and defendant, in the matter of supplying credit to the Gulf Fruit and Steamship Corporation in Nicaragua, in order that it might purchase and export to Mobile, Alabama, bananas, pleaded two certain other letters of credit issued by the defendant to its former correspondent, Compania Exportadora Nacional, one under date of November 14, 1933, and the other under date of December 13, 1933. Each was issued, as above stated, to enable the Gulf Fruit and Steamship Corporation to purchase bananas in Nicaragua, and export same to Mobile, Alabama, for sale at the latter place, or elsewhere. The plaintiff also brought forward, as a part of said count, the two letters written by the defendant to plaintiff at the time of the issuance of these letters of credit. While these letters of credit were issued to the Compania Exportadora Nacional, they were issued by the defendant at the instance of the said Gulf Fruit & Steamship Corporation, and each of said letters authorized the Compania Exportadora Nacional to value on the defendant on account of the said Gulf Fruit & Steamship Corporation. These former letters of credit were numbered 126 and 127 respectively.

We deem it proper to here set out the said letters of credit 126 and 127, and the two letters written by defendant to plaintiff with reference thereto.

Letter of credit 126 reads:

"No. 126 Cable Address:
" 'Amtrust'
"American National Bank & Trust Company
"Mobile, Alabama,
"November 24th, 1933.

"Compania Exportadora Nacional,

"Bluefields, Nicaragua.
"Irrevocable Revolving Letter of Credit
"Dear Sirs:
"We hereby authorize you to value on us for account of Gulf Fruit & S. S. Corporation up to aggregate amount of Ten Thousand and 00/100 ($10,000.00) available by your drafts at sight for 50/ per count bunch of bananas invoice cost of as per contract between you and Gulf Fruit & S. S. Corporation
"Except as noted above, drafts drawn hereunder are to be accompanied by a complete set of negotiable bills of lading drawn to the order of shipper and endorsed in blank (notify Gulf Fruit & Steamship Corporation) as well as consular and commercial invoices evidencing shipment of Al Prime Export Bananas. When the draft has been paid under this Letter of Credit the credit shall again become effective and no two drafts shall be outstanding at one time against it.
"A copy of the consular invoice, commercial invoice and one of the original bills of lading must be forwarded by first mail direct to us attaching to the draft a statement to the effect that this has been done.
"The bills of lading must be dated not later than December 31st, 1933.
"Bills of exchange must be negotiated not later than December 31st, 1933.
"Insurance to be covered by Gulf Fruit & S. S. Corporation.
"We hereby agree with the drawers, endorsers and bona fide holders of drafts drawn under and in compliance with the terms of this credit that the same shall be duly honored on presentation at the office of the drawee, payable at maturity at American National Bank & Trust Company.
"Exhibit 'A-1' (page 1)
"Each draft must state on its face that it is drawn under American National Bank & Trust Company letter of credit No. 126.
"We are, dear sirs, yours faithfully
"American National Bank & Trust
Company
"(sgd.) H. S. Denniston,
"Pres."
"(sgd.) H. K. Baker
Cashier."

The letter written by defendant to plaintiff at the time of the issuance of letter of credit 126, copied above, is as follows:

"American National Bank & Trust Company
"Mobile, Ala.
Nov. 24th, 1933.

"Banco Nacional de Nicaragua,

"Managua, Nicaragua.

"Gentlemen:

"At the request of the Gulf Fruit & Steamship Corporation we enclose herewith our irrevocable revolving letter of credit No. 126 in favor of the Compania Exportadora Nacional, at Bluefields, Nicaragua, covering shipments of bananas not to exceed $10,000 each, good until December 31st, 1933.

"We understand that after the first two shipments are made there will be a slight change in the prices and therefore, upon receipt of further information we shall make such modification as may be necessary. As soon as Mr. English returns we are informed that a new letter of credit will be requested.

"Very truly yours,
"(sgd.) H. S. Denniston
"President."

"HSD-R

"Enc. Original letter of Credit No. 126."

The defendant's letter of credit No. 127, under date of December 13, 1933, is as follows:

"No. 127 Cable Address:
" 'Amtrust'
"American National Bank & Trust Company
"Mobile, Alabama.
"December 13th, 1933.

"Compania Exportadora Nacional,

"Bluefields, Nicaragua.
"Irrevocable Revolving Letter of Credit
"Dear Sirs:
"We hereby authorize you to value on us for account of Gulf Fruit & Steamship Corporation up to aggregate amount of Fifteen Thousand & No/100 Dollars ($15,000) available by your drafts at sight for the invoice cost of bananas.
"Except as noted below, drafts drawn hereunder are to be accompanied by a complete set of negotiable bills of lading drawn to the order of shipper and endorsed in blank as well as consular and commercial invoices evidencing shipment of Al prime export bananas. Draft must be accompanied by invoice, tally sheet and bill of lading must be signed by captain of ship. Draft must be OK'D by W. R. Daves. Cargo No. 2 must be figured at sixty cents per payable bunch, cargoes Nos. 3 & 4 must be figured at fifty cents per payable bunch and subsequent cargoes not to exceed thirty five cents per payable bunch. When a draft has been paid under this letter of credit the credit shall again become effective and no more than two drafts shall be outstanding at one time against it. This letter of credit is subject to cancellation after which one cargo may be shipped within fifteen days from date of cancellation.
"A copy of the consular invoice, commercial invoice and one of the original bills of lading must be
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