Quimbee logo
DMCA.com Protection Status

Gilday v. Suffolk County National Bank

954 N.Y.S.2d 109 (App. Div. 2012)

Case BriefRelatedOptions
From our private database of 30,900+ case briefs...

Gilday v. Suffolk County National Bank

New York Appellate Division

954 N.Y.S.2d 109 (App. Div. 2012)

Facts

The Electrical Industry Board of Nassau and Suffolk Counties, New York (EIB) (plaintiff) administered employee-benefit plans for an electrical-workers’ union. Elemco Testing Company, Inc., Elemco Electrical Construction Co., Inc., and Elemco Industries, Inc. (collectively Elemco) employed members of the union. The collective-bargaining agreement between Elemco and the union required Elemco to make payments to EIB to fund the employee-benefit programs and maintain a surety bond securing Elemco’s contributions. Elemco filed for bankruptcy in November 2008. On June 15, 2009, the bankruptcy court issued an order authorizing Elemco to borrow $50,000 pursuant to a letter of credit for EIB’s benefit. The order provided, among other things, that the letter of credit would terminate upon the sale of Elemco’s assets. Suffolk County National Bank (defendant) issued a letter of credit in EIB’s favor on September 4, 2009. The letter of credit provided that $50,000 would be payable upon presentation of the letter along with a sight draft and a final order from the bankruptcy court certifying that Elemco had failed to remit the funds due to EIB. The letter of credit stated that it expired on September 4, 2010. On September 1, 2010, EIB executive director John Gilday (plaintiff) presented the letter of credit to the bank with a signed sight draft and a bankruptcy-court order stating that Elemco had failed to satisfactorily remit the funds to EIB. The bank refused to pay, arguing that pursuant to the bankruptcy court’s June 2009 order, the letter of credit had terminated on May 13, 2010, when the bankruptcy court authorized Elemco to finalize a sale of their assets. Gilday and EIB sued the bank in New York state court to recover under the letter of credit. Gilday and EIB moved for summary judgment, but the trial court denied the motion. Gilday and EIB appealed to the Appellate Division of the New York Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Eng, 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 553,000 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
  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.

    Learn about our approachRead more about Quimbee

Here's why 553,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 30,900 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.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 553,000 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
  • 30,900 briefs - keyed to 984 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