Blonder & Co., Inc. v. Citibank, N.A.
ZEK successfully obtained a decision, at the very outset of litigation, dismissing all claims by a customer that Citibank had wrongfully honored a letter of credit. The customer alleged that the documents presented by the beneficiary failed to comply with the terms of the credit and that it had notified Citibank, in time to refuse to pay the drawing, that it had been defrauded and that the documents presented were counterfeit.
The Court adopted ZEK's arguments, ruling that even a sloppy documentary presentation which “may bruise a plaintiff's aesthetic sensibilities” is not thereby rendered non-compliant with a letter of credit, and that the customer's attempt to stop payment by notifying the bank of an alleged fraud was futile absent a temporary restraining order. |
