Seaman v. Tamaqua National Bank
Seaman v. Tamaqua National Bank
Opinion of the Court
Opinion by
A majority of the court below (Judge Koch dissenting) entered judgment against plaintiff on an affidavit of defense by way of demurrer. The recital of facts in the statement of claim is lengthy. They need not be catalogued in this opinion, where it is sufficient to say that plaintiff’s action was based on an irrevocable letter of credit in his favor, issued by defendant, for the sum of $13,000. The statement disclosed that plaintiff drew a draft on defendant for $13,750, which it refused to honor. The court determined that appellant’s right of action depended on the breach of contract by the bank which was within its rights in refusing to pay the draft, as it exceeded the amount of the credit, and hence there was no breach of contract and no cause of action. The court misinterpreted the cause of action. It was brought to recover part of the money ($8,170.29) deposited to plaintiff’s account evidenced by the letter of credit.
The judgment is reversed with direction that the court shall proceed as we have outlined; costs to abide the final determination of the case.
Reference
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- Status
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- Syllabus
- Banks and banicing — Letter of credit — Draft in excess of amount of letter — Refusal of bank to pay — Contract. 1. Where a bank has issued a letter of credit in an amount specified, and it is subsequently sued for a part of the money evidenced by the letter of credit, it cannot set up as a defense that plaintiff had drawn a draft for an amount in excess of the letter, and that defendant had refused to pay such draft. Practice, O. P. — Affidavit of defense in nature of demurrer— Statement of claim — Ambiguous statement — Judgment—Leave to amend — Act of May 14, 1915, P. L. 488 — Amendment. 2. Where plaintiff files a statement of claim which is ambiguous as to his demand, the court should not enter summary judgment against him on an affidavit of defense in the nature of a demurrer, but should permit him to so amend his statement as to make his cause of action clear, under the Act of May 14, 1915, P. L. 483.