A.I. Credit Corp. v. Government of Jamaica

666 F. Supp. 629 (1987)

From our private database of 46,300+ case briefs, written and edited by humans—never with AI.

A.I. Credit Corp. v. Government of Jamaica

United States District Court for the Southern District of New York
666 F. Supp. 629 (1987)

Facts

Continental Illinois Bank and Trust Company (Continental) owned debt issued by the Government of Jamaica (Jamaica) (defendant). In August 1984, Continental assigned approximately $10 million of its Jamaica debt to A.I. Credit Corporation (AI) (plaintiff). The assignment was subject to Jamaica’s 1984 rescheduling agreement (1984 agreement) with foreign creditors. The 1984 agreement provided that (1) the amounts payable to each bank were separate and independent debts, (2) each bank was entitled to protect and enforce its rights arising out of the 1984 agreement, and (3) it would be unnecessary for any other bank to join a suit. The 1984 agreement further provided that the agreement’s agent, the Bank of Nova Scotia (agent) (1) had no functions, responsibilities, duties, obligations, or liabilities that were not expressly stated in the agreement and (2) was not required to initiate any suit, action, or proceeding arising out of or relating to the agreement. In 1985 and 1987, Jamaica—which was unable to make principal payments required by the 1984 agreement—entered into new debt-rescheduling agreements with most of its foreign creditors. However, AI refused to sign the 1985 and 1987 agreements. Instead, AI sued Jamaica, claiming, among other things, that Jamaica defaulted on six scheduled principal payments that were due under the 1984 agreement. AI subsequently moved for summary judgment on this claim. Jamaica responded that (1) AI did not have standing because the 1984 agreement prohibited individual creditors from suing Jamaica for payment without the participation of all the other lenders and (2) only the agent was authorized to sue Jamaica for breach of the 1984 agreement. Specifically, Jamaica contended that there were genuine issues of fact to be pursued through discovery and submitted for trial regarding (1) the intent of the 1984 agreement’s signatories and (2) banking industry custom and practice regarding whether individual lenders could enforce the 1984 agreement without acting in concert with other lenders. Jamaica also averred that granting summary judgment to AI could have a devasting financial impact on Jamaica due to the default provisions of Jamaica’s 1985 and 1987 agreements.

Rule of Law

Issue

Holding and Reasoning (Sand, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 814,000 law students since 2011. Some law schools even subscribe directly to Quimbee for all their law students.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

Here's why 814,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,300 briefs, keyed to 988 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 814,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,300 briefs - keyed to 988 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership