EVRA Corp. v. Swiss Bank Corp.

This is a transportation case, like Hadley, but it is money being transported this time. A bank was transporting money to Europe. The underlying contract was between Hyman-Michaels Co. (predecessor co. to EVRA) and an unnamed ship owner. H-M chartered the ship for two years. Charter rates increased significantly after the contract, so the ship owner will be looking for any way to rescind the contract (to recharter the ship at a higher rate).

The owner got his chance in 1972. H-M breach by being late with a payment. The owner did not sue for damages, instead he claimed the right to rescind (we will cover the relevant law later in the course). The case went to arbitration and the arbitrator ruled against the ship owner, but warned H-M that if they were late again, the result might be different. They were late again in 1973, and the arbitrator held that H-H could rescind the contract.

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