Hardage Hotels v. Crimi Mae Services
Hardage Hotels I, LLC (Hardage) sued Criimi Mae Services Limited Partnership (Criimi Mae), a special servicer under a $91 million loan agreement with Nomura Asset Capital Corporation (Nomura), for breach of contract, breach of fiduciary duty and conversion, alleging Criimi Mae wrongfully withdrew $73,000 of Hardage's funds from a third-party-controlled account established under the agreement for reimbursement of loan fees and expenses. The funds received by Criimi Mae were reimbursement for the cost of loan collateral appraisal, necessitated by a subsequent modification of the loan agreement. Hardage asserted it was not responsible for the appraisal costs under the terms of the loan modification agreement. On cross-motions for summary judgment, the trial court granted judgment in favor of Criimi Mae. It ruled that Hardage's claims failed as a matter of law because Hardage was contractually obligated to pay for the appraisals. Hardage appeals, contending that the trial court misinterpreted the applicable contractual language and that, in any event, extrinsic evidence submitted to the trial court created a triable issue of material fact, precluding summary judgment. Court disagree and, for the reasons stated hereafter, affirm the judgment.
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