Affordable Communities of MO v. Federal Nat'l. Mortgage Assoc., No. 12-2334 (8th Cir. 2013)
Annotate this CaseAffordable appealed the district court's grant of Fannie Mae's motion to dismiss, concluding that EFA had not acted as Fannie Mae's agent in originating the loan for a senior living complex that Affordable purchased and that the loan documents unambiguously authorized a prepayment penalty. The court affirmed the dismissal of Affordable's claims for negligent misrepresentation, breach of the covenant of good faith and fair dealing, and unjust enrichment. However, the court reversed the dismissal of Affordable's breach of contract claim where the agreement was ambiguous as to whether "condemnation award" included a sale in lieu of condemnation and remanded for further proceedings.
Court Description: Civil case - Contracts. The district court did not err in finding plaintiff had failed to plead facts establishing that defendant EFA was Fannie Mae's agent in connection with a loan plaintiff obtained; viewing the contract language in the context of the entire written document and considering the likely intent of the parties, the court concludes the agreement was ambiguous as to whether the phrase "condemnation sale" included a sale in lieu of condemnation, and the district court erred in dismissing plaintiff's claim that Fannie Mae breached the contract; district court did not err in dismissing plaintiff's breach of implied covenant of good faith and fair dealing claim or its claim for unjust enrichment.
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