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Wichita Eagle and Beacon Publishing Co., Inc. v. Pacific National Bank of San Francisco

United States Court of Appeals for the Ninth Circuit
493 F.2d 1285 (1974)


Wichita Eagle and Beacon Publishing Co., Inc. (WEB) (plaintiff) leased property to Circular Ramp Garages (CRG). As part of the lease, CRG was required to build a parking garage. To ensure performance, WEB obtained a document from Pacific Nation Bank of San Francisco (Bank) (defendant) titled Letter of Credit No. 17084. Pursuant to this document, Bank was obligated to pay $250,000 when presented with the document, as long as three conditions were met. Those three conditions were (1) CRG has breached the lease agreement, (2) WEB has provided an affidavit stating that it has given notice of breach to CRG, and (3) that CRG has continued to breach the lease for a period of 30 days after receiving the notice of the breach. CRG ultimately defaulted on the lease, and WEB attempted to draw upon the document. The Bank refused, and WEB sued the Bank. The trial court ruled that the document qualified as a letter of credit.

Rule of Law


Holding and Reasoning (Per Curiam)

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