Inequitable Noncontribution

Roger Bernhardt
2007 Social Science Research Network  
Morgan Creek Residential v Kemp (2007) 153 CA4th 675, 63 CR3d 232, truly fits under the Midcourse Corrections caption of this column, since it really calls on attorneys to start giving new advice to their clients: First, because it presents an issue that has probably never occurred to most counsel; second, because the way that the issue was resolved by the court will inevitably be ungratifying to those who deal with the same problem and will force them into heavy negotiations to come up with a
more » ... to come up with a better solution. As reported more fully on p 188, the several developers of the Morgan Creek Golf Course, to get a $6.5 million loan from Citicapital, posted partial guaranties that totaled $4.8 million. Citicapital wanted more security than that, and so the guarantors induced the master developer of the entire Morgan Creek project to add a letter of credit for another $1.4 million. This gave Citicapital a total of $6.2 million in additional security, over and above the deed of trustenough for the loan to go through.
doi:10.2139/ssrn.1789198 fatcat:tnv5l5wxi5exlnydzameovezci