Squidoo com1/1/2024 ![]() Squidco claims Mitsui's refusal to extend long-term financing without a blanket trust deed was tortious. Squidco also alleges Mitsui orally promised to provide long-term financing itself if needed, implying Mitsui would provide that long-term financing without requiring Squidco to subject various parcels of real property to a blanket trust deed which would permit Mitsui to purchase them all for a single credit bid at a single trustee sale in case of default. The real parties cross-complained for tort damages alleging Mitsui breached the covenant of good faith and fair dealing by reneging on its alleged oral promise to renew Squidco's short-term credit indefinitely until it was able to secure substitute long-term financing from another lender and that, should negotiations for long-term financing by other lenders prove fruitless, it would provide the long-term financing. Receiving none, it not surprisingly sued for money, enforcement of the continuing guaranties and foreclosure of security interest. When Squidco rejected alternative long-term financing arrangements proposed by Mitsui and remained in default, Mitsui demanded full payment. Eventually, Squidco defaulted on all Mitsui notes. These short-term loans were renewed from time to time while Squidco unsuccessfully attempted to obtain a long-term lender other than Mitsui. It was understood by Mitsui and the borrower that Squidco needed long-term development funds and would replace Mitsui's short-term loans with financing from other institutions, most within a year. The underlying dispute arose when real parties defaulted on commercial short-term loans after Squidco borrowed approximately $1,650,000 in various notes guaranteed by the Elsons, Dye and Fisherman's Supply Center and subject to a security agreement. In doing so, we reject real parties' contention they have raised a triable issue of material fact regarding whether Mitsui tortiously breached the covenant of good faith and fair dealing in a commercial transaction arising out of an arms-length routine lender/borrower contract. (Squidco), Fisherman's Supply Center, Inc., Joseph M. In this matter we grant petitioner Mitsui Manufacturers Bank's (Mitsui) request for a writ of mandate directing the Superior Court to vacate its order denying Mitsui's motion for summary judgment and grant it summary judgment on the cross-complaint of real parties in interest, The Squidco Corporation of America, Inc. Dickerson, Jr., for Real Parties in Interest. Timmons and Alix James Kocher for Petitioner. J., with Benke and Froehlich, JJ., concurring.) THE SUPERIOR COURT OF SAN DIEGO COUNTY, Respondent SQUIDCO CORPORATION OF AMERICA, INC., et al., Real Parties in Interest MITSUI MANUFACTURERS BANK, Petitioner, v.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |