Citizens National Trust & Savings Bank of Los Angeles v. Londono Dulien Steel Products, Inc., of California v. Londono

The appellants, Citizens National Trust & Savings Bank of Los Angeles, hereinafter referred to as the “Bank” and Dulien Steel Products, Inc., of California and Dulien Steel Products, Inc., referred to herein as the “Steel Co.” seek to reverse judgments in favor of J. B. Londono, a citizen and resident of Colombia and referred to in this opinion as “Mr. Londono”, in the aggregate sum of $236,355.51. The bank’s liability was fixed at the sum of $120,312.88.

The judgment provided that upon satisfaction by the Steel Co. it would also be satisfied as against the Bank and in the event the Bank satisfied any part or all of the judgment against it, the Bank would be *378 subrogated to the extent of such payment to the rights of Mr. Londono against the Steel Co.

This litigation arose out of two separate transactions. The complaint in the trial court was in three counts. The first count is against the Steel Co. for alleged breach of warranty respecting the quality of the wire sold. The second count is against the Bank for breach of contract by payment to the Steel Co. of $214,000 without obtaining a bill of lading required by a letter of credit. The third count was disposed of by the…

I concur in Judge HARRISON’S opinion as to what it says concerning the appeal of the Steel Company. However, the appeal of the Bank from Mr. Londono’s judgment against it is based upon entirely different grounds not considered in that opinion which require the reversal ordered.

On the appeal of the Bank from the judgment against it, it appears that Mr. Londono purchased from the Bank the following letter of credit to the Steel Co.:

For this letter of credit Mr. Londono paid the Bank $160,000 on July 27, 1946, when he received it and on July 29 gave his promissory note of $54,535, of which the $535 was added as the Bank’s charge for issuing the letter. The letter required the delivery of a particular kind of bill of lading. It was to be an “on board” bill, not one issued when the wire had not been loaded. It was to be for 2,000 tons. It was to be “made out to order, blank endorsed.”

The evidence shows that no "on board” bills of lading ever were issued on the 2,000 tons referred to in Londono’s contract with the Bank. The only bills in evidence state the goods are “received for shipment * * to be transported,” etc. Further, the evidence shows that no bill of lading of any kind…

(concurring).

I am in agreement with the opinion of Judge HARRISON. I agree also with the opinion of Judge DENMAN relating to the issue as between Londono and the Citizens National Bank.

204 F.2d 377 CITIZENS NATIONAL TRUST & SAVINGS BANK OF LOS ANGELES v. LONDONO et al. DULIEN STEEL PRODUCTS, Inc., of CALIFORNIA et al. v. LONDONO et al. No. 12886. United States Court of Appeals Ninth Circuit. March 30, 1953. Rehearing Denied June 24, 1953. Cosgrove, Cramer, Diether & Rindge, John N. Cramer, Leonard A. Diether and Jesse R. O'Malley, Los Angeles, Cal., for Citizens National Trust & Savings Bank of Los Angeles. Preston, Thorgrimson & Horowitz, Charles Horowitz, Seattle, Washington, Joseph H. Dasteel, Beverly Hills, Cal., for appellant, Dulien Steel Products, Inc., a Washington Corp. Thomas S. Bunn, Los Angeles, Cal., for appellee, J. B. Londono. 1 Before DENMAN, Chief Judge, and HEALY, Circuit Judge, and HARRISON, District Judge. 2 HARRISON, District Judge. 3 The appellants, Citizens National Trust & Savings Bank of Los Angeles, hereinafter referred to as the "Bank" and Dulien Steel Products, Inc., of California and Dulien Steel Products, Inc., referred to herein as the "Steel Co." seek to reverse judgments in favor of J. B. Londono, a citizen and resident of Colombia and referred to in this opinion as "Mr. Londono", in the aggregate sum of…