Airline Reporting Corporation v. The First National Bank of Holly Hill

DONALD RUSSELL, Circuit Judge:

The Airline Reporting Corporation (“ARC”) is appealing the district court’s Order dismissing the ARC’S action against The First National Bank of Holly Hill (Bank) for wrongful dishonor of a letter of credit. This case requires the court to apply South Carolina commercial law to determine whether the district court was correct in finding that the ARC committed fraud in drawing on a letter of credit given by the Bank as a guarantee of payment by a travel agency for tickets distributed to the agency for resale. We find that the ARC did not commit fraud and reverse.

I.…