Stringer Construction Co. v. American Insurance

This action was brought by Stringer Construction Company, Inc. (Stringer), the plaintiff, to enjoin the defendant, LaGrange State Bank (LaGrange), from paying out on its letter of credit to the defendant, American Insurance Company (American). After a hearing, plaintiff’s motion for a preliminary injunction was granted and LaGrange was enjoined from honoring American’s draft until further order of the court. American filed this interlocutory appeal pursuant to Supreme Court Rule 307(a)(1) (Ill. Rev. Stat. 1979, ch. 110A, par. 307(a)(1)).

The issues presented for review are whether the…