KELLEY v. FIRST WESTROADS BANK

Nos. 86-2443, 86-2574.

840 F.2d 554 (1988)

In re Richard W. KELLEY, et al. v. FIRST WESTROADS BANK, et al. (District Court Nos. CV 82-0-544, 82-0-545, 82-0-557, 82-0-679, 85-0-204). Ronald K. PARSONAGE; Don Erftmier; Tony LaMalfa; Robert F. Swartzbaugh; Gerald E. Palmer; Paul Alperson; John E. Ryan; Thomas T. Bernstein; Albert Bloch; Mark Anthony; Richard W. Kelley; Jack A. MacAllister; Bernard Magid and Gary Gunderson, Appellants, First Westroads Bank; Norwest Bank of Nebraska, N.A. (formerly United States National Bank of Omaha and Bank of Millard); Southwest Bank & Trust Company of Omaha; American National Bank; FirstTier Bank, N.A. (formerly The Omaha National Bank); First Westside Bank; and First National Bank & Trust Company of Columbus, Appellants, v. The FEDERAL DEPOSIT INSURANCE CORPORATION, as Receiver of the Penn Square Bank, N.A., Appellee. In Re: Richard W. KELLEY, et al. v. FIRST WESTROADS BANK, et al. (District Court Nos. CV 82-0-544, 82-0-545, 82-0-557, 82-0-679, 85-0-204) Ronald K. Parsonage; Don Erftmier; Tony LaMalfa; Robert F. Swartzbaugh; Gerald E. Palmer; Paul Alperson; John E. Ryan; Thomas E. Bernstein; Albert Bloch; Mark Anthony; Richard W. Kelley, Appellee, Jack A. MacAllister; Bernard Magid and Gary Gunderson, First Westroads Bank; Norwest Bank of Nebraska, N.A. (formerly United States National Bank of Omaha and Bank of Millard); Southwest Bank & Trust Company of Omaha; American National Bank; FirstTier Bank, N.A. (formerly The Omaha National Bank); First Westside Bank; and First National Bank & Trust Company of Columbus, The Federal Deposit Insurance Corporation, as Receiver of the Penn Square Bank, N.A., Appellant.

United States Court of Appeals, Eighth Circuit.

Decided February 9, 1988.

Rehearing Denied March 24, 1988.


Attorney(s) appearing for the Case

Thomas J. Dahlk, Omaha, Neb., for appellant.

James J. Frost, Omaha, Neb., for appellee.

Before LAY, Chief Judge; MAGILL, Circuit Judge; and LARSON, Senior District Judge.


MAGILL, Circuit Judge.

This appeal involves an interpretation of the law applied to commercial letters of credit in Nebraska. The issuers of several letters of credit (Issuing Banks) and their respective customers (Investors) appeal from a decision of the district court1 holding that the Issuing Banks wrongfully dishonored drafts against various letters of credit presented by the Federal Deposit...

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