Banco Do Brasil S.A. v. State Of Antigua And Barbuda

268 A.D.2d 75 (2000)

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Nature of the Case

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Facts

On November 12, 1981, Banco (P) entered into a loan with the State of Antigua and Barbuda (D) to grant D a loan in the amount of $3,000,000 plus interest. D executed promissory notes to repay the loan with interest. The Minister of Finance of D agreed to act as the guarantor of the loan and notes on behalf of D. D failed to make the payments. The last payment due was on January 21, 1985. On October 5, 1989, the Ministry wrote to P confirming its obligation to pay the amount under the loan, but due to damages from hurricane Hugo, it need to reschedule the payments and requested six months to devise a plan. A second letter was sent on February 24, 1997, in which the Ministry confirmed the remaining balances with a total of $11,400,810.96 due. Ds simply failed to make payments and P sued for breach of promissory notes and the guarantee agreement. Ds moved to dismiss in that the claims were barred by the Statute of Limitations. Ds argued that neither of the letters satisfied the requirements that they be an absolute and unqualified intention to repay the debt owed. Ds’ motion was denied. This appeal resulted.