Case ID: misc2d_93/html/0065-01.html
Source: Caselaw Access Project
Author: {"author": "", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

W. Pat Crow Forgings, Inc., Respondent, v Moorings Aero Industries, Inc., Respondent and Third-Party Plaintiff-Respondent. Bank Leumi Trust Company of New York, Third-Party Defendant-Appellant.
    Supreme Court, Appellate Term, Second Department,
    January 19, 1978
    APPEARANCES OF COUNSEL
    
      Parker Chapin Flattau & Klimpl (Mark Abramowitz and Menachem J. Kastner of counsel), for third-party defendant-appellant.
   OPINION OF THE COURT

Memorandum.

Order is unanimously reversed, without costs, third-party defendant’s motion for summary judgment granted and third-party complaint dismissed.

In our opinion, Bank Leumi’s refusal to honor the letters of credit was justified since, by their express terms, the letters had expired prior to the presentation of the required documents. We note that said letters of credit are governed by the Uniform Customs and Practice for Commercial Documentary Credits (Uniform Commercial Code, § 5-102, subd [4]). Since the Uniform Customs and Practice for Commercial Documentary Credits is silent on the question of oral modifications of irrevocable letters of credit, such modifications are governed by pre-Uniform Commercial Code case law (United Bank v Cambridge Sporting Goods Corp., 41 NY2d 254, 258, n 2). Under the circumstances, the alleged oral extension of the expiration dates was ineffective (Uniform Commercial Code, § 5-104, subd [1]; Harfield, Practice Commentary, McKinney’s Cons Laws of NY, Book 62-1A, Uniform Commercial Code, § 5-104, p 656; 9 CJS, Banks and Banking, § 177; O’Meara Co. v National Park Bank of N. Y., 239 NY 386, mot for rearg den 240 NY 607).

We pass on no other issues raised by the appellant.

Concur: Farley, P. J., Pittoni and Silberman, JJ.