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Case of the Day: Shanghai Commercial Bank v. Chang

The case of the day is Shanghai Commercial Bank Ltd. v. Chang (Wash. Ct. App. 2016). The bank had a Hong Kong judgment against Chang on account of an unpaid debt. The bank sought recognition and enforcement of the Hong Kong judgment in Washington, where Chang and his wife, Chen, had lived for many years. They were married long before Chang incurred the debt to the bank, though Chen herself had not incurred the debt and didn’t know about it at the time. The trial court held previously held that the Hong Kong judgment was entitled to recognition, and in today’s case it held that the judgment could be enforced against the marital property of Chang and Chen (Washington is a community property state). Chang appealed.
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Case of the Day: Bevilacqua v. US Bank

The case of the day is Bevilacqua v. US Bank, NA (Fla. Dist. Ct. App. 2016). US Bank brought a foreclosure action against a mortgagor, Renato Bevilacqua. The return of service indicated that Bevilacqua was personally served in Miami, Florida. US Bank obtained a default judgment, but Bevilacqua then moved to set aside the judgment, stating that he lived in Italy, had never been served with process, and had had no notice of the action. The court set aside the judgment. The bank then sought to serve process on Bevilacqua via the central authority under the Hague Service Convention.
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Case of the Day: Receivers of Sabena v. Deutsche Bank

Sudan Airways

The case of the day is Receivers of Sabena SA v. Deutsche Bank AG (N.Y. App. Div. 2016). Sabena, before it became insolvent, was Belgium’s national airline. It provided airplane maintenance services to Sudan Airways Ltd. In 1997, to pay for some services Sabena had provided for its planes, Sudan Airways initiated an electronic funds transfer for $360,000 with Sabena as the beneficiary. Sudan Airways’s bank was the National Bank of Abu Dhabi. Generale Bank was Sabena’s bank. Bankers Trust, in New York, was the intermediary bank. Its successor-in-interest was Deutsche Bank.

To understand the case, you need to know a little about electronic funds transfers, which are governed by Article 4-A of the UCC (or more precisely in this case, New York’s enactment of the UCC). Here is a brief description that the court quoted in its opinion:
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