AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• In 2003, Ambassador Development, LLC was formed by Edward and Cayetana Romero, Laurie Anderson, and Lenzer Enterprises, LLC to capitalize on the new housing market growth. Their business plan involved purchasing model homes from builders, leasing them back during subdivision development, and selling them afterward. To fund this, they secured a line of credit from the Bank of Albuquerque, initially set at $1.2 million, which was later increased to $4.8 million through renewals. Disagreements over the loan terms led the Bank to seek recovery of the outstanding debt and foreclosure on properties, prompting Ambassador to counter with claims of breach of agreement and bad faith by the Bank.

Procedural History

• [Not applicable or not found]

Parties' Submissions

• Plaintiff-Appellee (Bank of Albuquerque): Argued that the loan matured on December 15, 2007, it did not breach the loan agreement, and the guarantors were still obligated to guarantee the full loan amount.
• Defendants-Appellants (Ambassador Development, LLC and others): Contended that the Bank could not declare a default as the 2006 Business Loan Agreement (BLA) did not have a "date certain maturity date," alleged the Bank breached the 2006 BLA and acted contrary to good faith, and argued that the guaranties did not apply to the 2006 loan.

Legal Issues

• Whether the 2006 Business Loan Agreement (BLA) contained a specific maturity date allowing the Bank to declare a default.
• Whether the Bank breached the terms of the 2006 BLA or acted in bad faith in its dealings with Ambassador.
• Whether the guaranties executed in 2003 and 2004 applied to the 2006 loan.

Disposition

• The Court of Appeals affirmed the district court's judgment in favor of the Bank, including the outstanding balance of the loan, pre-judgment interest, post-judgment interest, costs, and attorney’s fees.

Reasons

• The Court of Appeals, led by Judge Michael D. Bustamante, with Judges Cynthia A. Fry and J. Miles Hanisee concurring, found substantial evidence supporting the district court's rulings. The court determined that the record supported the maturity date of December 15, 2007, for the disputed loan, found no breach of obligations under the loan agreement by the Bank, and upheld the obligation of the guarantors. The court also addressed Ambassador's arguments regarding the maturity dates, the alleged breaches of the BLA by the Bank, and the applicability of the guaranties to the 2006 loan, finding each without merit based on the evidence presented and the legal standards applied.