California Court of Appeal

Judgment in favor of defendant-landlord is reversed and remanded, where: 1) after a failed bank's lease was disaffirmed by the FDIC pursuant to the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), defendant-landlord had no right to effectively seize a $500,000 deposit belonging to plaintiff-assignee bank by drawing down on the letter of credit which was secured by that deposit; 2) defendant-landlord had no claim against plaintiff-assignee bank, which had not assumed the lease, and it had no claim for future rent against the FDIC as receiver; 3) based on the undisputed facts, plaintiff-assignee bank was entitled to a judgment in its favor on its California Uniform Commercial Code section 5110(a)(2) breach of warranty claim against defendant-landord, as a matter of law; and therefore 4) plaintiff-assignee bank is entitled to an award of reasonable attorney fees and other expenses of litigation.

Appellate Information

• Decided 08/16/2013
• Published 08/16/2013

Judges

• MOORE

Court

• California Court of Appeal

Counsel