In Memoriam: James Barnes
The trade world was saddened by the news of the loss of one of our own: Jim Barnes. Below are
DCW Litigation Digest
Richardson v. Prisoner Transport Services of America
Did the standby LC provide sufficient protection to the judgment creditor?
Richardson v. Prisoner Transport Services of America
No. 3:15-CV-01061, 2019 WL 1003624 (M.D. Pa. Feb. 27, 2019) [USA]
Topics: Evergreen Clause; Standby LC; Stay of Judgment; Supersedeas Bond
Parties:
• Plaintiff/Beneficiary – Darren Richardson
• Defendant/Applicant – Prisoner Transport Services of America
• Issuer – Pinnacle Bank
No. 3:15-CV-01061, 2019 WL 1003624 (M.D. Pa. Feb. 27, 2019) [USA]
Topics: Evergreen Clause; Standby LC; Stay of Judgment; Supersedeas Bond
Parties:
• Plaintiff/Beneficiary – Darren Richardson
• Defendant/Applicant – Prisoner Transport Services of America
• Issuer – Pinnacle Bank
Summary Note:
Following a jury trial, Prisoner Transport Services of America (Applicant) caused Pinnacle Bank (Issuer) to issue a USD 595,254.50 irrevocable standby letter of credit in favor of Darren Richardson (Beneficiary) to secure the judgment awarded to Beneficiary as Applicant sought a stay of judgment and post-trial relief. To obtain payment, Beneficiary was required to present to Issuer:
(1) an ‘original or certified copy of th[e] Letter of Credit;’ and (2) a certified copy of a court order stating (a) that the judgment entered is final and can no longer be appealed, (b) that [Beneficiary] has demanded payment from [Applicant], (c) that more than ten days have elapsed without [Applicant] paying up in full, and (d) what [Beneficiary] is owed.