Court Opinion

ID: 9473727
Source: CourtListenerOpinion
Date Created: 2023-08-05 04:38:06.352824+00
Date Added: 2024-06-11T17:43:42.374784
License: Public Domain

DUMBAULD, Senior District Judge,
concurring:
I concur in the reversal and remand, since the question whether the letter of credit incorporated the guarantee is thereby left entirely open, and can be decided in favor of Paribas unless the evidence at trial indicates otherwise.
In my view, the letter of credit is a totally independent instrument, with regard to which certainty and formality and strict interpretation are appropriate, as in negotiable instruments generally, for the encouragement of commerce.
I regard the reference to a guarantee “in accordance with Exhibit A attached” as a mere specification, like the form book appended to the Federal Rules of Civil Procedure. The issuance of such a guarantee is the consideration for the letter of credit. The only condition on payment is a timely written demand referring to the number and date of the letter of credit, and reciting that Paribas had been called upon to pay. Paribas did comply with these conditions and is entitled to receive payment accordingly.1
But if my interpretation is sound, it will rest on all the stronger ground if the facts are fully developed at trial, rather than resting on documents and on affidavits. Perhaps the words “in accordance with” are ambiguous and should be construed against their author (though that argument would really favor Paribas).
*387In any event I have no hesitation in joining in reversal and remand to the District Court.

. By the letter of credit American National Bank and Trust Company of Chicago promised to pay upon receipt of sight draft(s)
bearing the clause “Drawn under American National Bank and Trust Co. of Chicago L/C No. 202326 dated Chicago August 11, 1982 when accompanied by the following documents: your signed statement certifying that you have been called upon to make payment under your guaranty issued in favor of Saudi Med Center____ We have issued the above letter of credit in your favor in consideration of your issuance of a letter of guarantee in favor of: Saudi Med Center ... to expire on February 28, 1983 at the request of our customer Hamilton Industries International, Inc. in accordance with Exhibit A attached herewith."
The specified “EXPIRY DATE" of the letter of credit is March 15, 1983. Paribas sent its draft and signed statement on February 28, 1983 (Appendix, 48, 59-62). A telex of March 15, 1983, from American National confirmed receipt of the documents. (Appendix, 31).