Semetex Corp. v. UBAF Arab American Bank

OPINION

SAND, District Judge.

Plaintiffs Semetex Corporation (“Seme-tex”) and Eaton Corporation (“Eaton”) bring this diversity action to compel payment on an international letter of credit issued by the Central Bank of Iraq and confirmed by Defendant UBAF Arab American Bank (“UBAF”). The controversy between the parties arises out of an extraordinary accident of timing — the fact that Iraq invaded Kuwait, and President Bush froze all Iraqi assets in the United States, at the very time that equipment manufactured by Eaton and procured by Semetex was en route from Austin, Texas to the purchaser in…