Savarin Corporation v. National Bank of Pakistan

290 F. Supp. 285, 1968 U.S. Dist. LEXIS 9340
CourtDistrict Court, S.D. New York
DecidedOctober 3, 1968
Docket67 Civ. 1371
StatusPublished
Cited by8 cases

This text of 290 F. Supp. 285 (Savarin Corporation v. National Bank of Pakistan) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Savarin Corporation v. National Bank of Pakistan, 290 F. Supp. 285, 1968 U.S. Dist. LEXIS 9340 (S.D.N.Y. 1968).

Opinion

OPINION

HERLANDS, District Judge:

Defendant National Bank of Pakistan (hereinafter “the Bank”) moves for summary judgment, pursuant to Rule 56 of the Federal Rules of Civil Procedure, on all causes of action naming the Bank as defendant, upon the grounds that there exist no genuine issues of material fact and that the Bank is entitled to judgment as a matter of law. For the reasons hereinafter stated the motion is denied with respect to all causes of action.

Plaintiff Savarin Corporation (hereinafter “plaintiff”) entered into a contract on September 20, 1966, with defendant S.H.A. Sharbatly (hereinafter “Sharbatly”) for the sale by plaintiff to Sharbatly of approximately 6,000 tons of wheat, 3,000 tons to be shipped to Dammam, Saudi Arabia and 3,000 tons to be shipped to Jeddah, Saudi Arabia [the “wheat contract”]. Sharbatly agreed to establish promptly letters of credit to effect payment and to advise plaintiff by cable of the establishment of these credits.

Sharbatly cabled plaintiff on September 22,1966, informing plaintiff that the Dammam credit would be opened September 25, 1966 and the Jeddah credit September 29, 1966.

On September 26, 1966, plaintiff received two communications from the New York branch of the Bank. One related to the Jeddah branch letter of credit No. 3697, of which relevant parts read:

“[printed] We are in receipt of a cable/wire from our correspondent indicated above which reads as follows:

‘[typewritten] WE ESTABLISH CONFIRMED IRREVOCABLE CREDIT THREESIXNINE SEV-EM [sic] SHA VSHARBATLY JEDDAH SAVARIN CORPORATION ELEVEN BROADWAY NEWYORK FOUR NY AMOUNT ABOUT USDOLLARS ONEFIVE-FOURFOURTWOFIVE SHIPMENT ABOUT ONEFIVEZEROZERO METRIC TON HARD WINTER NUMBER ONE OLD GRADE WHEAT NEWCROP DARKRED BIG GRAIN PRICE USDOLLARS ONZEROTWO [sic] CENTS NINETYFIVE PER MTON C AND F DAMMAM USAPORT DAMMAM VALIDITY THIRTIETH NOVEMBER FIFTEENTH DECEMBER SIXTYSIX DETAILS AIRMAILING’ ”

Also printed on the communication was the following:

“Please note that the above is given to you in accordance with instructions of the above mentioned correspondent and conveys no engagement by us.”

And:

“This credit is subject to the Uniform Customs And Practice For Documen *287 tary Credits (1962 Revision). International Chamber of Commerce Brochure No. 222.”

The second communication, on a similar form, related to the Jeddah branch credit No. 3698 and reads substantially the same.

On October 13, 1966 plaintiff received two communications from the Bank’s New York branch on forms similar to those received September 26, 1966, relating to Jeddah branch credit Nos. 3713, 3717. The relevant parts of No. 3713 read:

“[printed] We are in receipt of a cable/wire from our correspondent indicated above which reads as follows: [remainder typewritten] This is subject to mail confirmation.
‘WE ESTABLISH CONFIRMED IRREVOCABLE CREDIT THREESEVENONETHREE SHA SHAR-BATLY JEDDAH SAVARIN CORPORATION ELEVEN BROADWAY NEWYORK FOUR ' NY AMOUNT ABOUT USDOLLARS ONEFOURNINENINET W O FIV E SHIPMENT ABOUT ONEFIVE-ZEROZERO METRIC TONS AMERICAN HARD WINTER NUMBER ONE OLD GRADE WHEAT NEWCROP DARKRED BIGGRAIN PAKEDIN [sic] NEW-DOUBLE JUTEBAGS WITH BLUELABEL ATTACHED ON EACHBAG WEIGHING ONETWOZERO [handwritten “LBS”] GROSS FOR NET PRICE USDOLLARS NINETYNINE CENTS NINETY-FIVE PER METRICTON CANDF JEDDAH LINERTERMS SHIPMENT SHOULD BE IN THRE [handwritten “E”] LOTS EACH LOT NOT EXCEEDING FIVE HUNDRED TONS TEN PERCENT MORE OR LESS USAPORT JED-DAH SHIPMENT SHOULD BE EFFECTED BY FIRSTCLASS STEAMER WHICH SHOULD NOTBE OVERTHAN TWENTY YEARSOLD TRANSHIPMENT NOTALLOWED PARTSHIPMENT ALLOWED SHIPMENT THIRTIETH NOVEMBER NEGOTIATION FIFTEEN DECEMBER SIXTYSIX SHIPPING DOCUMENTS TOBE IN TWO GROUPS EACH GROUP ABOUT TWOFIVEZERO TONS TEN PERCENT MORE OR LESS DETAILS AIRMAILING’ ”

The communication relating to No. 3717 was substantially similar.

On October 17, 1966, plaintiff received from the Bank’s New York branch two communications on the same form as described above relating to credits Nos. 3697, 3698. This communication had a typewritten “x” in two squares indicating that the printed language immediately adjacent was applicable. The printed language so indicated provides:

“ [x] At the request of our correspondent indicated above, we are enclosing their letter of credit established in your favor.
******
[x] ‘This is a mail confirmation of the credit opened by cable through us. It is only available for such amount as has not already been availed of under such cable advice and may not be availed of at all unless attached to and as part of our notification dated [typewritten “9/26/66”} of such cable, the two jointly constituting the outstanding amount of this credit.’ ”

Attached to each of these communications was a formal document issued by the Jeddah branch headed:

“This Is In Confirmation Of Our Cable Of Date And Is Negotiable Only If Accompanied By Cable Advice. Confirmed Irrevocable Credit No. 003697 Date 25-9-1966”

This document, in its relevant provisions, reads as follows:

“[printed] We have opened our confirmed and irrevocable credit without recourse in your favour available to the sum of [typewritten “Abt.$.154425= 00”] * * * by your drafts in duplicate to be drawn on [typewritten
*288 “S.H.A. SHARBATLY JEDDAH”] at sight for full invoice cost of shipment by [typewritten “A Steamer”] purporting to be [remainder typewritten unless otherwise indicated] About 1500 Metric tons American Hard Winter Number One old Grade Wheat New Crop dark red big grain packed in new double jute bags with blue label attached on each bag weighing 120 Lbs gross for net at $.102.95 Per Metric ton C. AND F. DAMMAM Liner terms, shipment should be in three lots each lot not exceeding 500 tons 10% more or less.
******
Insurance is locally done by the M/s. Hussein Aouini & Co., Jeddah, represent to General Insurance Society for the near east, under their policy No. 1111J dated 9th October, 1966. They should be promptly advised the name of the carrying steamer quoting their policy number and a copy of this advice should accompany the relative documents * * *.
******
Shipping documents to be in two groups each group about 250 tons 10% more or less.”

On October 25, 1966 plaintiff received two communications from the Bank’s New York branch with respect to credit Nos. 3713, 3717 similar to that received October 13, 1966 relating to credit Nos. 3697, 3698, with the material provisions of these documents substantially the same as detailed above.

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Cite This Page — Counsel Stack

Bluebook (online)
290 F. Supp. 285, 1968 U.S. Dist. LEXIS 9340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/savarin-corporation-v-national-bank-of-pakistan-nysd-1968.