United California Bank v. Prudential Ins. Co
In United California Bank v. Prudential Ins. Co., 140 Ariz. 238, 283, 681 P.2d 390, 435 (App. 1983), Prudential Insurance Company (Prudential) was a commercial lender and the intended "take-out" lender for the construction of the Hyatt Regency Hotel in downtown Phoenix. 140 Ariz. at 246, 681 P.2d at 398.
Prudential had agreements with the developer of the hotel, HRP Hotel Company (HRP), and with United California Bank (UCB), another lender, when it refused to fund the permanent loan for the hotel. Id.
UCB and HRP sued Prudential on its obligation to fund the loan, and a jury found Prudential liable and awarded the developer HRP over ten million dollars in damages, plus attorneys' fees. Id.
The jury awarded UCB nominal damages of one dollar, plus its attorneys' fees. Id.
In discussing the law of anticipatory repudiation, we opined that the non-breaching parties (UCB and HRP) needed to show "'that they would have been ready and willing to have performed the contract, if the repudiation had not occurred.'" Id. at 289, 681 P.2d at 441.
The Court wrote that HRP and UCB need not "go to the substantial expense of concluding preparations or to tender performance.
All HRP and UCB needed to do was demonstrate to the jury that they had the ability to fulfill their commitment letter obligations in February 1977.
This they proved to the jury's satisfaction." Id. at 289, 681 P.2d at 441.
It is key that in United California Bank, HRP and UCB were the plaintiffs seeking damages. Id. at 246, 681 P.2d at 398.
To be awarded damages as plaintiffs, HRP and UCB had to show that they were ready and willing to have performed the contract. Id. at 288-89, 681 P.2d at 440-41.