Brief Fact Summary. The Woods, (Appellees) brought suit against State Bank of Long Island, (Appellant), for failure to honor a letter of credit. The Supreme Court of New York found that Appellees complied in all respects with the letter of credit and granted summary judgment in their favor. Appellant appeals this decision.
Synopsis of Rule of Law. Letters of credit are to be strictly complied with and the bank or trust company has no discretion to waive any of these requirements.
There is no discretion in the bank or trust company to waive any of these requirements.View Full Point of Law
Issue. Whether Appellant properly refused to honor the letter of credit.
Held. Yes. Appellant properly refused to honor the letter of credit because Appellees’ attorney failed to comply precisely with the letter of credit.
Discussion. Appellees’ attorney was required to present a sight draft mentioning credit number 1147 accompanied by a certification that Jacklyn had “willfully failed to close title in accordance with the provisions of the contract.” He failed to comply precisely with the letter of credit. Substantial compliance is not enough; strict compliance is required.