From our private database of 37,200+ case briefs...
Border National Bank of Eagle Pass v. American National Bank of San Francisco
United States Court of Appeals for the Fifth Circuit
282 F. 73 (1922)
Joseph De Bona was a broker dealing in sugar. In April 1920, De Bona sought to purchase sugar from Maldonado & Company (Maldonado). Negotiations between De Bona and Maldonado culminated in an agreement for De Bona to purchase 200 tons of sugar in the future from Maldonado provided that De Bona’s bank, Border National Bank of Eagle Pass (Border Bank) (plaintiff) wired Maldonado’s bank, American National Bank of San Francisco (American Bank) (defendant) an irrevocable letter of credit. Subsequently, Border Bank notified Maldonado that it would guarantee De Bona’s contract for the sugar. Then, Maldonado contracted with Amsinck & Company (Amsinck) to purchase sugar to fill De Bona’s contract. Amsinck required a letter of credit from Maldonado. American Bank furnished a letter of credit on behalf of Maldonado, relying on the letter of credit from Border Bank. In June 1920, De Bona attempted to cancel his contract with Maldonado. A few days later Border Bank notified American Bank that it was revoking its obligation under the letter of credit. Maldonado and American Bank insisted that De Bona and Border Bank perform pursuant to their obligations. In September 1920, the sugar was shipped, and American Bank paid out on its letter of credit to Amsinck a total of $96,310.11 for the sugar. In November 1920, American Bank presented a draft, or money order, to Border Bank for $98,594.88. Border Bank refused to pay. The sugar was sold for $28,534.46 at public auction. American Bank sued Border Bank to recover the difference between the cost of the sugar and the proceeds at auction. The district court entered judgment for American Bank in the amount of $72,368.84. Border Bank appealed, arguing that its agreement to guarantee De Bona’s debt was ultra vires, or outside the bank’s legal authority, so the debt obligation was void.
Rule of Law
Holding and Reasoning (Bryan, J.)
What to do next…
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 630,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
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.Learn about our approachRead more about Quimbee
Here's why 630,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 37,200 briefs, keyed to 984 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.