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Mercator Line, Inc. v. Witte Chase Corp.

1990 U.S. Dist. Lexis 4425 (1990)

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Mercator Line, Inc. v. Witte Chase Corp.

United States District Court for the Southern District of New York
1990 U.S. Dist. Lexis 4425 (1990)

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Facts

Mercator Line, Inc. (Mercator) (plaintiff) entered into a charter agreement with Witte Chase Corp. (defendant). The agreement contained a clause stating, “Acct Witte Chase or nom, if nom then same to be gur by Witte Chase.” Witte Chase nominated Ferromet Inc. to fulfil the agreement. After Ferromet failed in its obligations under the agreement, Mercator sued Witte Chase for damages. Mercator claimed that Witte Chase was liable under the charter agreement’s guaranty clause. Witte Chase responded that the agreement was controlled by New York law and that under New York law surety agreements like the one Witte Chase allegedly had with Mercator had to be in writing. Witte Chase pointed out that Mercator based its claim on allegations that Witte Chase had orally agreed to the charter agreement. Thus, Witte Chase moved to dismiss Mercator’s claim.

Rule of Law

Issue

Holding and Reasoning (Keenan, J.)

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