European American Bank v. Three Park Ave. Building Co.
October 13, 2009
(Civ. Ct. N.Y. Cty. 10/3/00)
Defendant had leased premises to third party (not named in suit), which had obtained as security a letter of credit from plaintiff made payable to defendant. When third party defaulted under its lease, defendant drew down the full amount of letter of credit, and plaintiff then commenced action to recover a portion of payment. Court found that while third party may owe money to plaintiff, defendant is under no obligation to turn over any portion of payment to plaintiff, and drawing down of entire amount of letter of credit was valid. Defendant awarded costs and disbursements. Link to Full Text of Decision
