AXA Assurance, Inc. v. Chase Manhattan Bank

The opinion of the Court was delivered by

CARCHMAN, J.A.D.

This appeal requires us to reconcile two assertedly disparate clauses contained in a letter of credit (the letter). The first clause, referred to as an “evergreen” clause, provides for annual automatic renewal of the letter of credit without notice. The second clause, referred to as the “expiry” clause, provides a fixed termination date for the letter. Judge Stephen F. Smith, Jr., in the Law Division, held that the expiry clause governed and granted summary judgment in favor of defendant Chase Manhattan Bank (the bank2). We agree with…