FIRM OBTAINS SUMMARY JUDGMENT IN FAVOR OF AN ISSUING BANK IN MULTI-MILLION DOLLAR DISPUTE OVER A LETTER OF CREDIT
March 31, 2011
In a decision of importance relating to letters of credit, the Firm obtained summary judgment on behalf of Mizuho Corporate Bank, Ltd. (“Mizuho”), which issued a multi-million dollar letter of credit to facilitate an international commercial transaction between a New York technology equipment company and a Taiwan manufacturing entity. [CVD Equipment Corp. v. Taiwan Glass Industrial Corp., et al., 10 Civ. 0573 (S.D.N.Y.) (RJH); 2011 U.S. Dist. LEXIS 35791]. After the parties became embroiled in a dispute over the terms of their international commercial transaction, the New York company contended that Mizuho wrongfully dishonored a drawdown request under the Letter of Credit. On cross-motions for summary judgment, the United States District Court for the Southern District of New York (Holwell, J.), granted Mizuho’s motion for summary judgment and denied the New York company’s cross-motion for summary judgment against Mizuho, and held that Mizuho properly denied the drawdown request in a timely manner. Copies of the decision and the transcript of oral argument are available by clicking the links below.