Mago V LHB Appeal.pdf

Mago International, LLC appealed a district court order granting summary judgment to LHB AG, citing failure to comply with a standby letter of credit (SLOC). The SLOC required a "photocopy of B/L evidencing shipment of the goods to the applicant." Mago submitted unsigned copies of bills of lading, which LHB rejected. The district court concluded that the unsigned copies did not evidence shipment, and Mago did not strictly comply with the SLOC terms. The appeals court affirmed the district court's order, agreeing that Mago did not comply with the SLOC terms.

Key points:
- Mago International, LLC appealed a district court order granting summary judgment to LHB AG.
- The SLOC required a "photocopy of B/L evidencing shipment of the goods to the applicant."
- Mago submitted unsigned copies of bills of lading, which LHB rejected.
- The district court concluded that the unsigned copies did not evidence shipment.
- The appeals court affirmed the district court's order, agreeing that Mago did not comply with the SLOC terms.

The appeals court based its decision on the principle that a beneficiary must comply strictly with the terms of a letter of credit, and that any ambiguities are construed against the bank. The court found that the SLOC's requirement for a "photocopy of B/L evidencing shipment" was clear and that Mago's submission of unsigned copies did not meet this requirement.