Pennsylvania court rules on letter of credit posted by cedent
A Pennsylvania court has ruled in a dispute over the sufficiency of a letter of credit posted by a cedent and draws on that instrument. The state court's opinion is available through Mealey's. Eastern Atlantic Ins. Co. v. Swiss Reinsurance America Corp., No. 2004 cv 5514 (Pa. Comm. Pls. Dauphin Co.). There had been a parallel action in federal court, in which the Court abstained to permit the state court to adjudicate the disputes. Eastern Atlantic Ins. Co. v. Swiss Reinsurance America Corp., Case No. 04-1555 (M.D. Pa. Dec. 16, 2004).
