Fertico Belgium, S.A. v. Phosphate Chemicals Export Association, Inc.
New York Supreme Court, Appellate Division
100 A.D.2d 165 (1984)
In October 1978, Phosphate Chemicals Export Association, Inc. (PhosChem) (defendant) sold fertilizer to Fertico Belgium, S.A. (Fertico) (plaintiff). The fertilizer was to be shipped to Antwerp, Belgium on a cost and freight (C&F) basis. The parties did not specify a delivery deadline, but shipment had to occur by November 8. Fertico arranged for the Banque de Paris et des Pays-Bas Belgique, S.A. (Paribas) to open an irrevocable letter of credit in PhosChem’s favor. Paribas so notified PhosChem’s bank, Irving Trust (Irving). Irving confirmed that payment would be due upon the presentment of certain documents, including onboard bills of lading dated no later than November 8 and a copy of PhosChem’s telex to Fertico specifying the cargo ship’s name and estimated arrival. The fertilizer was loaded by November 8, and an onboard bill of lading dated November 8 was issued. Also on November 8, PhosChem telexed Fertico that the ship sailed on November 8 and was expected in Antwerp on December 4. However, the ship—which subsequently loaded additional cargo—did not sail until November 11. Fertico did not notify Paribas or Irving of any problem or request that the banks withhold payment. On November 17, PhosChem requested payment from Irving and submitted, among other things, a copy of its telex to Fertico stating that the ship sailed on November 8. PhosChem received payment soon thereafter. The ship arrived in Antwerp on December 17 after first stopping in Germany. In October 1981, Fertico sued PhosChem for, among other things, fraud and conversion. Fertico alleged that the fertilizer was delivered too late because the ship sailed after November 8 and made a stop before Antwerp and that PhosChem fraudulently induced Irving to pay PhosChem via the telex that falsely claimed a November 8 sailing. The trial court granted partial summary judgment to Fertico, ruling that the letter of credit required that the ship sail by November 8 and travel directly to Antwerp, neither of which occurred.
Rule of Law
Holding and Reasoning (Sullivan, 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 710,000 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 710,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 44,600 briefs, keyed to 983 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.