Ultramar Energy Ltd. v. Chase Manhattan Bank

The plaintiff, Ultramar Energy Limited, contends that the Supreme Court erred in dismissing its second and third causes of action on the basis of documentary evidence presented by Chase (see, CPLR 3211 [a] [1]). As to the second cause of action, it is alleged that Chase, with knowledge of its debtor’s poor financial condition, nonetheless enforced its security agreement against the debtor by receiving and retaining purported accounts receivable owing to the debtor from participants in a circular sale sequence oil trade. The plaintiff, one of the participants in this oil transaction, who had…