First American Commerce Co. v. Washington Mutual Savings Bank

First American Commerce (plaintiff) took a commercial loan from First Security Realty Services (defendant), secured by First American's building, with the loan agreement giving First Security approval rights over new leases and holding back some funds pending tenant improvements. First Security immediately assigned the loan to Washington Mutual Savings Bank (WAMU) (defendant), with First American's knowledge and consent. When First American later sought lease approval, neither First Security nor WAMU approved it, and after completing the improvements, First American asked First Security to release the held-back funds, but First Security claimed it had delegated that obligation to WAMU and so wasn't responsible. First American sued both; the trial court granted summary judgment to the defendants except on a fraud claim against First Security, and First American appealed.