United States Second Circuit

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Louisiana Stadium & Exposition v. Financial Guaranty Insurance, 10-2030

In appeal of district court's grant of defendant's 12(b)(6) motion to dismiss plaintiff's complaint to rescind an agreement to purchase bond insurance, judgment is affirmed, where: 1) plaintiff's error in judgment founded upon its own evaluation of future market conditions does not permit rescission based on an error of cause; 2) for the same reasons, plaintiff fails to state a viable claim for a breach of an implied obligation; 3) because defendant did not yet expressly renounce its obligations under the contract, there is no anticipatory breach; and 4) defendant's Commitment Letters unambiguously disclosed that its credit rating was subject to change and therefore plaintiff cannot benefit from the theory of detrimental reliance.

Appellate Information

  • Decided 11/06/2012
  • Published 11/06/2012

Judges

  • POOLER

Court

  • United States Second Circuit

Counsel