TRIDENT CENTER V. CONNECTICUT GENERAL LIFE INSURANCE. CO
847 F.2d 564 (9th Cir 1988)
NATURE OF THE CASE: Trident (P) appealed a decision that dismissed P's complaint and, sua
sponte, sanctioned P for the filing of a frivolous lawsuit.
FACTS: Trident (P) was the partnership of an insurance company and two large law firms.
The partnership's goal was to build an office building. P entered into a loan agreement for
a building with Connecticut (D). The written agreement stated that P would borrow $56
million to construct an office building. The contract provided that the loan could not be
paid off in the first 12 years. If P defaulted in the first 12 years, D could accelerate the
payments and add a prepayment fee. The loan rate was 12.5%. After the building was
completed, interest rates began to fall and P sought to repay the loan in full after four
years. D refused to allow the prepayment. P brought a declaratory relief action to determine
the meaning of the contract. Despite the clear meaning on the face of the contract, P
claimed that the parties had intended to allow prepayment at any time if a penalty was paid.
At the hearing, P was not permitted to present parol evidence of the meaning of the contract
but at the same time admitted that the contract was unambiguous. The court dismissed the
suit and imposed sanctions against P for filing a frivolous lawsuit. P appealed.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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