Multimillion-Dollar Jury Verdict Against Mastercard International
HNRK represented Jordanian financial services company ICC in connection with breach of contract and conversion of letter of credit against Mastercard International, Inc., in the United States District Court for the Southern District of New York. From 1999 to 2013, ICC was a Mastercard Principal Member, licensed in Jordan and Palestine as an issuer and an acquirer. In April 2013, Mastercard sent ICC a letter terminating ICC membership in Mastercard’s global electronic payment system. Mastercard drew down $2.78 million on a letter of credit that ICC had posted as collateral on May 10, 2012. ICC filed suit against Mastercard alleging improper termination and improper drawing down of the letter of credit.
In May 2017, HNRK tried the action before a jury, which found that Mastercard improperly drew down the letter of credit and awarded ICC damages in the amount of $2.78 million.
The matter is currently on appeal to the United States Court of Appeals for the Second Circuit.