Midland Bank P.L.C. v. Varadi Shipping Corporation - Supreme Ct. of the State of New York (Dontzin J.) - 28 August 1990

Ship finance agreement - Whether banks breached duty of good faith

In December 1979 Midland Bank and Chase Manhatten entered into loan agreements with ten shipping companies of which Mr Stravelakis was the sold stockholder. The banks agreed to lend the borrowing companies $8,500,000 and 2,552,821 in Japanese Yen. Each company was the owner of a ship which was its sole source of income.