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Contracts Keyed to Farnsworth
Trident Center v. Connecticut General Life Ins. Co.
Citation:
847 F.2d 564Facts
An insurance company and two large Los Angeles-based law firms joined together to form a partnership called Trident Center (“Trident”) (plaintiff). The partnership was created for the purpose of constructing an office building complex in Los Angeles. Trident Center obtained financing for the project from Connecticut General Life Insurance Company (“Connecticut General”) (defendant). The promissory note provided that the interest rate for Trident’s loan would be set at 12 ¼ percent for 15 years. The note prevented Trident from prepaying the loan for the first 12 years. Years later (but before the 12 years had lapsed), Trident sought to refinance the loan to take advantage of the lower market interest rates. Connecticut General refused to oblige. Trident brought suit, seeking a declaration that it was entitled to prepay the loan now.
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