177 Misc. 45 | N.Y. Sup. Ct. | 1941
Plaintiff agreed to buy egg yolk powder from concerns in China, and agreed to pay for it by means of bankers' letters of credit against which the seller might draw drafts accompanied by invoices and bills of lading. Plaintiff thereupon procured defendant to issue its letters of credit authorizing such drawings. Plaintiff now seeks to enjoin defendant from accepting drafts drawn under such letters of credit because plaintiff has an apprehension, which I assume to be well founded, that even if bills of lading accompany the drafts, plaintiff never will get the egg yolk powder because such bills may be issued by Japanese ships which will fail to bring the powder to the United States.
It is quite plain, however, that under plaintiff's contracts the sellers have performed and are entitled to their pay when bills of lading are obtained, and that defendant is required to accept the drafts when bills of lading are presented, and that it is the plaintiff who took the .risk of actual delivery of the goods. That is the plain meaning and necessary effect of authorizing the sellers to draw drafts accompanied by bills of lading instead of delaying payment
If there were any suggestion of collusion between the sellers of the merchandise and the issuers of the bills of lading, of course an entirely different question would be presented. Nothing of that kind is alleged.