Opinion
January 6, 1994
Appeal from the Supreme Court, New York County (Beverly Cohen, J.).
It is uncontested that Citibank issued an irrevocable letter of credit to Wedtech Corporation with Ross Bicycles as the beneficiary. Upon the presentation of written drafts showing that Ross had shipped the mail containers as provided in its contract with Wedtech, Ross was entitled to be paid by Citibank pursuant to the letter of credit (First Commercial Bank v. Gotham Originals, 64 N.Y.2d 287; United Bank v. Cambridge Sporting Goods Corp., 41 N.Y.2d 254).
Ross Bicycles may also recover any damages caused by Citibank's anticipatory breach of the letter of credit (Zeevi Sons v Grindlays Bank, 37 N.Y.2d 220). But, as the IAS Court properly determined, Ross Bicycles, to establish damages, must show that, but for Citibank's wrongful repudiation, it would have been ready, willing and able to fulfill its obligations under the contract (United Bank v. Cambridge Sporting Goods Corp., supra, at 258).
Concur — Sullivan, J.P., Rosenberger, Ellerin and Rubin, JJ.