WBCMT 2007 C33 Office 9720 v. NNN Realty Advisors, No. 15-20086 (5th Cir. 2016)
Annotate this CaseWBCMT challenges the district court's adverse judgment in a breach of contract suit to recover on a guaranty of financing for a commercial project. The district court held that the term “Borrower” in the guaranty refers collectively to all of the numerous borrowing entities, not to each of them individually. The court concluded that the only reasonable, textually supportable interpretation of “Borrower” is that it refers to the collective entities or to each individual borrowing entity, as the context may require. “Borrower” is unambiguous as a matter of law in the Guaranty. Therefore, NNN Realty’s interpretation of “Borrower” as limited to all borrowing entities collectively creates various absurdities throughout the Guaranty—so much so that the interpretation cannot be considered a reasonable alternative interpretation of “Borrower.” Accordingly, the court reversed and rendered judgment for WBCMT.
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