Pubali Bank v. City National Bank, the Aristos Group, Jack A. Willis, Robert McGuire Margo Svikhart

Pubali Bank (Pubali) appeals from the dismissal of its action for damages for breach of contract, fraud and negligent misrepresentations. We reverse and remand.

The events leading to this action began when Emerald, a Bangladesh corporation, contracted to sell and deliver in Syria a quantity of jute produced in Bangladesh. Having arranged for the jute, Emerald negotiated with Aristos, a California corporation, to charter ships to transport the jute from Bangladesh to Syria. It was apparently necessary to transport the jute on two different vessels at different times. Aristos chartered two vessels for the appropriate time periods. To finance these arrangements, Aristos borrowed money from its regular bank, City National Bank (CNB). Aristos’ loans were payable on demand and were initially secured by collateral pledged by the principals of Aristos and others.

Aristos, as disponent owner, and Emerald, as charterer, entered into two charter parties, one for each of the two vessels involved. The charter parties were identical except for vessels, dates, times, cargo quantities and rates charged for carriage of cargo; each required payments of specified amounts in U. S. dollars per…