World Fuel Services, Inc. v. First Service Bank [2024]

World Fuel Services, Inc. v. First Service Bank [2024]
No. 24-cv-22369-Altman/Sanchez, slip op. (S.D. Fla. Aug. 6, 2024) [USA]

Type of Lawsuit: Issuer moved to dismiss wrongful dishonor complaint.

Topics: Breach of Contract; Due Process; Personal Jurisdiction; Wrongful Dishonor; Know Your Customer (KYC).

Parties:
• Plaintiff/Beneficiary – World Fuel Services, Inc., a Texas company headquartered in Florida
• Defendant/Issuer – First Service Bank, based in Arkansas
• Applicant – SQRL Holdings LLC

Underlying Transaction: Fuel supplier extended credit and loans to gas station operator.

LC: USD 6 million standby letter of credit. Silent as to choice of law and practice rules.

Decision: The US District Court for the Southern District of Florida, Altman, J., granted the motion in part and stayed the action to allow for limited discovery.

Rationale: Florida District Court lacks personal jurisdiction over Arkansas bank that issued single letter of credit in favor of Florida beneficiary.