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906 - Case laws - Miscellaneoous
Philippine Airlines, Inc. v. City Trust Bank No. 96-16677, 1997 U.S. App. LEXIS 27182 (9 th Cir. 17 September 1997) Bank Officer Negligence in LC Issuance. |
| The Ninth Circuit Court of Appeals in a Memorandum Opinion affirmed the decision of the U.S. District Court for the Northern Mariana Islands (Munson, J.) granting summary judgment in favor of City Trust Bank in a third party action for negligence against Ana G. Duenas. The opinion indicated that the facts supported the conclusion that Duenas served as a Director of City Trust and in that capacity never reviewed relevant banking laws or the bank's by-laws, approved the issuance of one LC without investigating the financial condition of the applicant or obtaining any security, and attempted to cancel the LC without consulting either an attorney or other members of the board. In the principal action, the beneficiary had recovered the amount of the LC from the bank. |