Penthouse International, Limited v. Dominion Federal Savings and Loan Association
United States Court of Appeals for the Second Circuit
855 F.2d 963 (1988)
Relevant factsFree
Dominion was one of several lenders committed to financing Penthouse's Atlantic City casino project under a loan commitment expiring March 1, 1984, but Penthouse remained far from satisfying preclosing conditions like licensing and utility approvals as that date approached; Dominion voiced concerns and suggested restructuring, and only after the March 1 expiration did the overall project collapse and lenders withdraw, with the district court basing its anticipatory breach finding on Dominion's post-expiration actions.
IssueFree
Whether a lender that fails to meet its commitment to participate in a loan transaction is automatically liable for anticipatory breach.
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