The Milky Whey, Inc. v. HSBC Bank USA, N.A. [2024]

The Milky Whey, Inc. v.
HSBC Bank USA, N.A. [2024]
No. 23-CV-486-LTS, slip op. (S.D.N.Y. Mar. 31, 2024) [USA]

Type of Lawsuit: Confirming Bank moved to dismiss Beneficiary complaint for wrongful dishonor.

Topics: Amendment; Complying Presentation; Standby LC; ISP98 Official Commentary; ISP98 Rule 1.02; ISP98 Rule 2.01; ISP98 Rule 4.01; ISP98 Rule 4.15(a); Original LC; Original Amendments; N.Y. UCC Rev. Section 5-103; UCC Section 5-108; UCC Section 5-116

Parties:
• Plaintiff/Seller/Beneficiary – The Milky Whey, Inc.
• Defendant/Confirming Bank – HSBC Bank USA, N.A.
• Second Defendant/Issuer – HSBC Bank Canada
• Buyer/Applicant – The Winning Combination, Inc.

Underlying Transaction: Sale and purchase of unspecified goods.

LC: Confirmed USD 800,000 standby LC subject to ISP98 and New York law.

Decision: The U.S. District Court for the Southern District of New York, Swain, J., granted the motion to dismiss.

Rationale: Complaint failed to state claim for wrongful dishonor where ISP98 standby required presentation of original credit and its amendments and beneficiary presented amendment copy.