DCW Updates
DCW Monthly: December 2024
We’re thrilled to share the newest edition of DCW’s premium monthly content. This month’s highlights include: * Five
October 2024
World Fuel Services, Inc. v. First Service Bank [2024]
Issuer First Service Bank moved to dismiss wrongful dishonor complaint brought by World Fuel Services.
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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.
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.