Korea Export Ins. Corp. v. Audiobahn
Plaintiff Korea Export Insurance Corporation (KEIC) underwrites bills of exchange purchased by Korean banks from Korean exporters to finance their shipments of goods to other countries, including the United States. When defendant Audiobahn, Inc., failed to satisfy bills of exchange it had accepted for a shipment of electronic parts, KEIC paid the payee bank and asserted subrogation rights against Audiobahn. In a bench trial, the court found the payee bank to be a holder in due course of the bills of exchange, and that KEIC stood in the banks shoes as subrogee. The court nonetheless entered judgment for Audiobahn, holding a notice provision in an assignment agreement between the shipper and KEIC imposed a condition subsequent upon KEICs status as a holder in due course, and KEIC failed to satisfy this condition. Court conclude the trial court erred in imposing the condition subsequent. The assignment agreement did not purport to affect KEICs right to enforce the bills of exchange, and nothing in the agreement could reasonably be read as imposing a condition subsequent. Accordingly, Court reverse, and remand with instructions that the trial court enter judgment for KEIC.
Comments on Korea Export Ins. Corp. v. Audiobahn