Paramount Export Co. v. Asia Trust Bank, Ltd.

In February 1982, Paramount Export Company (hereafter appellant or Paramount) filed a complaint for declaratory relief and damages for money due on a letter of credit against Wells Fargo, respondent’s advising bank, and Central Bank in San Francisco Superior Court. In May 1983, the Superior Court entered judgment in favor of Wells Fargo and Central Bank. Having lost that case, Paramount instituted the present action in July 1983 against Asia Trust Bank Ltd., (hereafter respondent or Asia Trust) alleging that respondent had wrongfully dishonored a letter of credit.

In October 1983, respondent Asia Trust answered the complaint, alleging that Paramount had failed to mitigate damages and to perform the terms of the letter of credit. Respondent also alleged that appellant was collaterally estopped from contending that it had complied with the terms and conditions of the letter of credit.

In March 1984, respondent moved the court for summary judgment or alternatively for summary adjudication of issues. Judgment was entered against Paramount and Paramount filed a timely notice of appeal.

The factual context is as follows. In October 1981, Paramount Export Company entered into…