The promissory note was to be activated in the event that the Highway Commission drew upon the letter of credit and was secured by various properties, including a first deed of trust on the property which had been subject to the execution. The Bank charged the Myers a fee for the issuance of the letter of credit, and obtained a promissory note from them in the amount of $350,000. This Credit is subject to the "Uniform Customs & Practice for Documentary Credits (1974 Revision), International Chamber of Commerce, Publication No. 16513 dated Kansas City, Missouri, JanuWE HEREBY AGREE WITH THE DRAWERS, ENDORSERS AND BONA FIDE HOLDERS OF DRAFTS DRAWN UNDER, AND IN COMPLIANCE WITH THE TERMS OF THIS CREDIT, THAT SUCH DRAFTS WILL BE DULY HONORED ON PRESENTATION TO THE DRAWEES if drawn and negotiated not later than January 5, 1979 An affidavit signed by the legal counsel for the Missouri State Highway Commission and a director of Shughart, Thomson & Kilroy, presented on January 5, 1979, stating that no final judgement has been reached.Īll drafts drawn under This Credit are to be endorsed hereon and shall bear the clause "Drawn under COMMERCE BANK OF KANSAS CITY N.A., LETTER OF CREDIT NO. A signed order of the Circuit Court of Jackson County, Missouri, directing payment of a judgement in the amount specified by the Court, or Ģ. WE HEREBY AUTHORIZE YOU TO DRAW ON COMMERCE BANK OF KANSAS CITY, N.A., Kansas City, Missouri UP TO AN AGGREGATE AMOUNT OF US $350,000.00 (Three Hundred Fifty Thousand and 00/100 US Dollars AVAILABLE BY YOUR DRAFT(S) AT Sight TO BE ACCOMPANIED BYġ. Letter of credit number (of issuing bank) 16513ĭate of issue (month/day/year) January 5, 1978 This document, in pertinent part, reads as follows: On January 5, 1978, a member of the Myers' family, the family's attorneys, the Commission's attorney, and a Bank official met to consider the use of a letter of credit rather than a supersedeas bond to stay execution on the house.Īs a result of this meeting, the Bank issued a document which stated, inter alia, that it was a letter of credit, effective for one year, (Januto January 5, 1979), and that upon presentation to the Bank of certain documents, the Bank would pay up to $350,000 to the Highway Commission. The Myers unsuccessfully moved to quash the execution, and also failed in their efforts to gain a writ of prohibition against the proposed action. In December, 1977, the Commission sought execution on the Myers' house. The Myers' filed a notice of appeal from this adverse judgment, but failed to file a supersedeas bond. As a result, the trial court ordered the Myers to repay the Commission the $237,000 difference, plus interest. The jury assessed the Myers' damages at $150,000, $237,000 less than the condemnation commissioners' award. Both the Myers and the Highway Commission filed exceptions to the award and in May, 1976, the case went to trial. In February, 1971, the condemnation commissioners assessed damages for the appropriation at $387,000, and issued the Myers a check in that amount. In July, 1970, the State Highway Commission petitioned to condemn certain land owned by Ardeis Myers and Flora Myers as tenants by the entirety. Accordingly, the factual summary which follows, though lengthy, is limited to that which is necessary for the disposition of the issues now before the Court. See also, Commerce Bank of Kansas City v. Morganstein, 588 S.W.2d 472 (Mo.1979), and State of Missouri ex rel. The full procedural history of this case can be found in two prior appellate opinions. The judgment of the trial court is reversed. ![]() We granted transfer and now treat this case as on original appeal. The trial court ruled that the letter of credit was tantamount to a supersedeas bond and exercised jurisdiction over the Bank, pursuant to Rule 81.11. The letter of credit was issued to stay the execution of a judgment obtained by the Commission against Mrs. The issue is whether the trial court has jurisdiction over Commerce Bank (hereafter the Bank) under Rule 81.11 as a result of a letter of credit issued to the Missouri Highway and Transportation Commission (hereafter the Commission) by the Bank on behalf of Flora E. ![]() Schrader, Jr., Bruce Ring, Gary McMillan, Kansas City, for respondent.Ĭommerce Bank appeals from the entry of summary judgment against it by the trial court. Gibbons, Kansas City, for appellant.Įarl H. Meyers, Jr., Defendants,Ĭommerce Bank of Kansas City, Missouri, N.A., Appellant. ![]() MISSOURI HIGHWAY AND TRANSPORTATION COMMISSION, etc., Respondent,Īrdeis H.
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