Steiny and Company, Inc. v. Citicorp Real Estate, Inc.

STEINY AND COMPANY, INC., Plaintiff, Respondent and Cross-appellant, v. CITICORP REAL ESTATE, INC., Defendant, Appellant and Cross-respondent. No. A075133 (San Francisco County Super. Ct. No. 935776) California Court of Appeal First Appellate District Division Three Filed June 17, 1999
ORDER MODIFYING OPINION AND DENYING REHEARING [NO CHANGE IN JUDGMENT]
        BY THE COURT:
        It is ordered that the opinion filed May 18, 1999, be modified in the following particulars:

1. On page 3*, the first sentence of the last paragraph is changed to read as follows:

        Finally, when in December 1990 it became clear that FCA could not meet its loan obligations and was unable to obtain additional financing to complete the project, CREI recorded a notice of default on the project and thereafter initiated foreclosure proceedings.

2. On page 20**, the second and third sentences of the first paragraph are changed to read as follows:

        Steiny reasons as follows: Taking into account the $95 million advanced under the construction loan agreement and the $50 million re-lent after payment of the interim advances, CREI made advances totaling $145 million on a $95 million loan. Because under the loan agreement CREI was only obligated to loan $95 million, the $50 million re-lent after payment of the interim advances constituted nonobligatory advances exceeding the original commitment and are therefore not subject to lien priority under section 3136.

        There is no change in the judgment. The petition for rehearing is denied.


*        See Daily Appellate Report of May 20, 1999, page 4665, column 2, last full paragraph.

**        See Daily Appellate Report of May 20, 1999, page 4670, column 2, second sentence, 1st full paragraph.