FIL ED U.S. COURT OF APPEAL S EL EVENTHCI RCUI T FEB RUARY 13, 2012 J OHN L EY CL ERK [DO N OT PUBLISH]

IN THE UN ITED STATES COURT OF APPEALS FOR THE ELE VENTH CIRCUIT

__ __ __ __ __ __ __ __ __ __ __ __ No. 1 1- 10 29 6

__ __ __ __ __ __ __ __ __ __ __ __ D.C. Dock etNo. 8 :0 8- cv -0 06 10 -J DW -AEP PNC BANK, NATIONAL ASSOCIATION, Pl ai nt iff - App el le e, ve rs us BRANCH BANKING AND TRUST COMPANY, as acqui rer o f certa inass et s o f Co lo ni al Ban k, Defen da nt -Ap pe ll an t.

__ __ __ __ __ __ __ __ __ __ __ __ App eal fro m

th e Uni te d S ta te s Di st ric t Co urt forth e Mi dd le Dis tri ctof F lo rid a

__ __ __ __ __ __ __ __ __ __ __ __ (Feb ru ary 13 , 20 12 ) Befo re BARKETT, PRYOR an d KRAVITC H, Circ ui t Jud ge s. PER CURI AM:Thi s l aws ui t ar is es ou t o f a l oa n p art ic ip at io n a gr eem en t b etweenCo lo ni al

Ban k, the pre de ces so r-i n- in te res t o f Branc h B an ki ng an d Tru stCo m pa ny, and Mer can ti le Mo rtg ag e Co m pa ny, the pre de ces so r-i n- in te res t o f PNC Ba nk . Co lo ni al adm in is te reda lo anto The Hamm oc ks Cap e Haze , LLC, whic h o bt ai ne d th e lo anto de ve lo p andco ns tru ctco nd om in iu m un it s. Aft er tria l, the di st ric t co urt ru le d t ha t Co lo ni al bre ach edth e lo anpa rti ci pa ti on ag reem en t wh enitun il at eral ly (1 ) pe rm it te d C ap e Haze to bu il d i n e xc es s o f 92 co nd om in iu m un it s aton e ti m e an d (2 ) acc ep te d “ rel eas e p ric es ” o f le ss th an$7 4,0 60 for52 un it s. Bra nc h Ban ki ng ap pe al s the jud gm en t en te redinfav orof P NC Ban k. We affi rm inpa rt, rev ers e in pa rt, andrem an d fo r fu rth er p ro ceed in gs co ns is te ntwith t hi s o pi ni on . I. BACKG ROUND Cap e Haze pl an ne d t o d ev el op an d c on st ru ct23 4 c on do m in iu m un it s i n 3 0 bu il di ng s i n S ou th wes t Fl or id a an d app li edfora lo anto fin an ce the pro ject. Co lo ni al ag reedto len d C ap e Haze $3 4,8 64 ,17 4, an d t he two pa rti es si gn eda lo an ag reem en t. Cap e Haze off eredas c ol la te ral th e co nd om in iu m s, an ass ig nm en t o f ren ts an d l eas es , andanun co nd it io na l g ua ran ty of pa ym en t an d p erfo rm an ce. Co lo ni al ag reedto di sb ur se th e lo anpro ceed s i n two p orti on s. Th e fi rs t po rti onco ns is te d o f $1 3,8 64 ,17 4 fo r th e in it ia l i m pr ov em en ts to th e p ro pe rty, and th e se co ndpo rti on co ns is te d o f a $ 21 m il li on rev ol vi ng li ne of c red itfor 2co ns tru ct in g c on do m in iu m s. Be cau se th e se co ndpo rti on was arev ol vi ng li ne of

cred it , th e su m s ad va nc edco ul d b e rep ai d a ndre-a dv an ced . The lo anag reem en t re qu ire d C ol on ia l t o re le as e it s l ie n o n aco nd om in iu m un itup on pa ym en t o f a m in im um “ rel eas e p ric e.” The rel eas e p ric e was to equa l th e g reat er o f 90 pe rcen t o f th e g ro ss li stpri ce o f th e co nd om in iu m un itor 1 00 pe rcen t o f th e n etpro ceed s fr om th e sa le of t he co nd om in iu m un it , bu t the rel eas e pr ic e co ul d n otbe les s than 1 25 pe rcen t o f th e co stto co ns tru ctth e uni t. Co lo ni al ag reedto ap pl y

pa rt o f th e “ Rel eas e Pri ce [p aym en t] . . . to th e . . . bal an ce o f [the fir stpo rti on of t he lo an ], bu t i n n o e ve ntles s tha n S ev en ty-Fou r Tho us an d S ix ty Dol lars pe r Uni t ($ 74 ,06 0.0 0) .” Co lo ni al an d M erca nt il e la te r en te reda lo anpa rti ci pa ti on ag reem en t, i n whi chMerc an ti le pu rch as eda 42 .63 45 pe rcen t i nt eres t i n t he lo an . The p art ie s ag reedth atFlo rid a la w wou ldgo ve rnth e en fo rcem en t an d i nt erp ret at io n o f th e pa rti ci pa ti on ag reem en t. Co lo ni al ret ai ne d aut ho rit y to co ll ectpaym en ts of pr in ci pa l, i nt eres t, an d fe es an d was requi redto rem itto Merc an ti le it s s ha re o f th e pr oc eed s. Co lo ni al als o a ccep te d l iabi li ty for an y m at eri al bre ach es of the pa rti ci pa ti on ag reem en t, b utth e p art ie s ag reedth atCo lo ni al ass um edno

“ res po ns ib il ity

forth e fi na nc ia l co nd it io n o f [Cape Haze], for the sec ur ity va lu e o f an y co ll at eral th e su ffi ci en cy th ereo f, or

forth e p erfo rm an ce o f an y ob li ga ti on s o f 3[Cap e Haze ]. ” Mer can ti le an d C ol on ia l ag reedto ad d a n a dd it io na l re qu ire m en t t o

th e lo anag reem en t wh ic h p ro vi de d t ha t “ [i]n n o e ve ntsh al l [C ap e Haze ] have in ex ces s o f ni ne ty-two ( 92 ) Uni ts un de r co ns tru ct io n at an y on e ti m e wit ho utth e Len de r’s pr io r writ te n c on se nt .” The p art ie s ag ree t ha t “ Len de r” re ferr edto Co lo ni al . Merca nt il e an d C ol on ia l al so ag reedas f ol lo ws t o l im itth e d is cret io n o f Co lo ni al to m od ify un il at eral ly the ob li ga ti on s o f Cap e Haze un de r th e lo an ag reem en t: “ [Co lo ni al ] m ay no t, wi th ou t [t he ] pr io r writ te n c on se nt[of Mer can ti le ] . . . m ak e . . . any . . . mod ifi cat io n o r . . . alte rat io n i n a ny of th e m at eri al ob li ga ti on s, co ve na nt s o r ag reem en ts of [ Cap e Haze ] . . . und er an y of t he Loan Do cum en ts . . . .” Afte r Co lo ni al an d M erca nt il e ex ecu te d t he pa rti ci pa ti on ag reem en t, Co lo ni al lo an edCap e Haze fun ds to co ns tru ctm or e th an92 co nd om in iu m un it s at on e ti m e. Eachm on th Cap e Haze subm it te d t o C ol on ia l re qu es ts forlo an pr oc eed s an d i nc lu de d i nf orm at io n abo utth e num

be r of un it s u nd er co ns tru ct io n. Co lo ni al si gn edan d app ro ve d t ho se reque st s an d a dv an cedlo anpro ceed s fo r th os e un it s. As of S ep te m

be r 12 , 20 06 , Cap e Haze ha d 1 40 un it s und er co ns tru ct io n. As o f Nov em

be r 20 , 20 06 , Cap e Haze ha d 1 62 un it s und er co ns tru ct io n. Co lo ni al rel eas edit s l ie n o n a t l eas t 5 2 c on do m in iu m un it s ev enth ou gh Cap e Haze ha d p ai d C ol on ia l re le as e p ric es of l es s tha n $ 74 ,06 0. Co lo ni al di d n ot 4rece iv e co ns en t fr om Merc an ti le to acce ptrel eas e p ric es be lo w $7 4,0 60 . Inau tu m n o f 20 07 , Jo hn Lon g, the Vice Pres id en t o f Mer can ti le , agr eedto ex te ndth e m atur ity

da te of t he lo an , alt ho ug h Lo ng kn ew th atCo lo ni al ha d rel eas edun it s i n e xc hang e fo r paym en ts les s tha n $ 74 ,06 0. Whe n C ap e Haze de fau lt edon th e n ew m atur ity da te , Lon g c om

pl ai ne d t o Co lo ni al ab ou t h ow i t h adadm in is te redth e lo an . On Dece m be r 7, 2 00 7, Lo ng se ntto James Hog an , a Sen io r Cre di t Offi cer o f Co lo ni al , a let te r th ataccu se d Co lo ni al of wi ll fu l m is m an ag em en t an d s ta te d t ha t Co lo ni al ha d b reac he d t he pa rti ci pa ti on ag reem en t. Lon g d em an de d t ha t Co lo ni al rep ur ch as e th e pa rti ci pa ti on in te res t i n the lo anown edby Mercan ti le , bu t Co lo ni al refu se d. Afte r Cap e Haze de fau lt edon th e lo an , PNC Ban k b ecame the su cces so r-i nin te res t t o M ercant il e an d fi le d aco m pl ai ntag ai ns t Co lo ni al . PNC Ban k a ll eg ed th atCap e Haze ha d (1 ) fai le d t o p ay th e m in im

um rel eas e p ric es forco nd om in iu m un it s b efo re Co lo ni al rel eas edth e uni ts fro m th e m ortg ag e li enan d (2 ) co ns tru ct ed m or e th an92 un it s aton e ti m e. PNC Ban k c om pl ai ne d t ha t Co lo ni al ha d b reac he d it s o bl ig at io ns un de r th e p art ic ip at io n a gr eem en t, wh ic h fo rb ad e Co lo ni al fro m m od ifyin g t he m at eri al ob li ga ti on s o f Cap e Haze witho utth e co ns en t o f Mer can ti le . Bran chBan ki ng be cam e th e su cces so r-i n- in te res t t o C ol on ia l an d an swe redth atCo lo ni al ha d n otbre ach edth e p art ic ip at io n a gr eem en t. Bra nc h 5Ban ki ng als o arg ue d tha t M erca nt il e h adwaiv edit s o bjec ti on to an y all eg ed br each be cau se Lon g h adex te nd edth e m atur ity da te of t he lo anaft er h e h ad le arn edth atCo lo ni al ha d a ll owe d C ap e Haze to pa y rel eas e p ric es les s than $7 4,0 60 . Afte r a b en chtri al , th e d is tri ctco urt ru le d i n fa vo r of PNC Ban k. Th e co urt ru le d t ha t Br an chBan ki ng owed$7 ,29 8,6 00 to co m pe ns at e PNC Ba nkforth e co ns tru ct io n o f m or e th an92 un it s; $7 11 ,71 6 t o c om pe ns at e PNC Ba nkforth e rel eas e o f un it s fo r le ss th anth e m in im um rel eas e p ric e; pre

jud gm en t i nt eres t o f $1 ,73 6,6 14 .08 ; an d p os t-ju dg m en t i nt eres t ca lc ul at edat t he fed eral st atut ory rat e II . STANDARD OF REVIEW W e rev ie w fin di ng s o f fac t fo r cl ear e rro r an d c on cl us io ns of l aw de no vo . Sea B yte , Inc . v. Hu ds on , 56 5 F .3d12 93 , 13 00 (11 thCir . 20 09 ). W e rev ie w a da m ag es awardfor“ cl ear e rro r” an d “ affo rdco ns id erab le de fere nc e to th e d is tri ct co urt.” Hi at t v . Uni te d S ta te s, 9 10 F.2d73 7, 7 42 (11 th Cir . 19 90 ). Und er Fl or id a law, “ [w]hethe r wai ve r ha s o ccu rredis ge ne ral ly a qu es ti on of f act , rev ie wedfor co m pe te nt , subs tant ia l ev id en ce.” J oh ns on v. Harr el l, 9 22 So . 2d10 56 , 10 57 –5 8 (Fl a. Dis t. Ct . App . 20 06 ). An ap pe ll at e co urt wi ll rev ers e a wai ve r de te rm in at io n

“ on ly if th ere i s n o c om

pe te ntsubs tant ia l ev id en ce t o s up po rt t he fin di ng .” Hil l v . Ray Carte r Aut o S al es , Inc ., 74 5 S o. 2 d 1 13 6, 1 13 8 (F la . Dis t. Ct . App . 19 99 ). 6II I. DI SCUSSI ON

Bran chBan ki ng pre se nt s fo uris su es on ap pe al . Firs t, Br an chBan ki ng arg ue s tha t Co lo ni al di d n otbre ach th e p art ic ip at io n a gr eem en t wh enitpe rm it te d Cap e Haze to co ns tru ctm or e th an92 co nd om in iu m un it s aton e ti m e. Seco nd , Bran chBan ki ng arg ue s tha t Co lo ni al di d n otbre ach th e p art ic ip at io n a gr eem en t by relea si ng co nd om in iu m un it s fo r a rel eas e p ric e o f le ss th an$7 4,0 60 . Thir d, Bran chBan ki ng arg ue s tha t the di st ric t co urt cl earl y erre d wh enitde te rm in edth at Lon g’s d eci si on to ex te ndth e m atur ity of t he lo andi d n otwaiv e th e ri gh t o f Mer can ti le to ob

ject t o t he all eg edbre ach es of t he pa rti ci pa ti onag reem en t. Fo urth , Bran chBak in g a rg ue s tha t the di st ric t co urt cl earl y erre d wh enit cal cu la te d t he da m ag es award . W e d is cu ss each is su e in tu rn . A. Col on ia l Di d N

ot Brea ch th e Par ti ci

pa ti on Agr eemen t When it Permi tt ed

Ca pe Haz e to Bui ld

in Exces s o

f 9 2 Un it s a t a Time . The di stric t co urt erredwhen itfou ndth atCo lo ni al bre ach edth e pa rti ci pa ti on ag reem en t wh enitpe rm it te d C ap e Haze to bu il d i n e xc es s o f 92 un it s aton e ti m e. The l oa n a gr eem en t al lo wedCap e Haze to ob ta in pe rm is si on fro m Co lo ni al be fo re i t b ui ltm or e th an92 un it s: “ Inno ev en t s ha ll Bo rro wer [Cape Haze] hav e in ex ces s o f ni ne ty-two ( 92 ) Uni ts un de r co ns tru ct io n a t an y on e ti m e witho utLend er’s p rio r writ te n c on se nt .” Becaus e PNC Ba nkan d B ran chBan ki ng

7ag ree t ha t “ Len de r” re fers to Co lo ni al , Cap e Haze ful fil le d i ts ob li ga ti on un de r th e

lo anag reem en t wh enitob ta in edwrit te n p erm is si on fro m Co lo ni al to bu il d m or e th an92 un it s; Co lo ni al di d n ot“ m od ify” th e o bl ig at io ns of C ap e Haze when Co lo ni al gra nt edth is pe rm is si onto Cap e Haze . W e m us t g iv e m ean in g t o e ach an d e ve ry wordinanag reem en t, s ee Equi ty L ife st y le v. Fl a. Mo win g, 5 56 F.3d 12 32 , 12 42 (11 th Cir . 20 09 ), an d a ny oth er i nt erp ret at io n i gn or es th e p hr as e,

“ witho utLend er’s p rio r writ te n c on se nt .” Not hi ng inth e ag reem en t re qu ire d C ol on ia l t o o bt ai n t he co ns en t o f Mer can ti le be fo re g ran ti ng Cap e Haze pe rm is si on to bu il d a dd it io na l u ni ts . Whe n th e p art ie s t o t he pa rti ci pa ti on ag reem en t ad de d t he requi rem en t o f writ te n c on se nt to bu il d m or e th an92 un it s, M erca nt il e co ul d h av e requi redth atCap e Haze ob ta in pe rm is si on fro m

bo th Co lo ni al an d M erca nt il e, bu t M erca nt il e ex ecu te d an ag reem en t tha t re qu ire d C ap e Haze to ob ta in pe rm is si on on ly from Co lo ni al . B. Col on ia l Br ea ch ed

th e Par ti ci

pa ti on Agr eemen t When it Accep te d Rel ea se Pri ces Les s Th an th e Min imu m Pri ce S pe ci fi ed byth e Lo an Agr eemen t. Bran chBan ki ng off

ers th ree a rg um en ts forwhy Co lo ni al di d n otbre ach th e pa rti ci pa ti on ag reem en t b y rel eas in g 5 2 u ni ts forles s tha n $ 74 ,06 0: (1) th e lo an ag reem en t g ran te d C ol on ia l the di sc ret io n t o a ccep t re le as e p ric es les s tha n $7 4,0 60 ; (2 ) Co lo ni al co ul d n otco m pl y with t he term s o f th e lo anag reem en t; an d

8(3 ) th e d eci si on of C ol on ia l t o a ccep t l owe r rel eas e p ric es was re as on ab le un de r

th e ci rcu m st an ces . Thes e arg um en ts fai l. Bran chBan ki ng arg ue s tha t Co lo ni al ha d t he so le di sc ret io n t o d et erm in e th e rel eas e p ric es be cau se sec ti on 16 (g ) of th e p art ic ip at io n a gr eem en t fo rb ad e Co lo ni al fro m

rel eas in g “ any

sec ur ity forth e lo anot he r th anrel eas es m ad e in co nn ect io n wi th th e sa le of the un it s t o t hi rdpa rty purch as ers ” wit ho utth e pe rm is si on of M erca nt il e. Bran chBan ki ng arg ue s tha t, b ecau se Co lo ni al co ul d rel eas e a co nd om in iu m

un itfro m

th e m ortg ag e li enwitho utth e p erm is si on of Mer can ti le , Col on ia l co ul d a ls o d et erm in e th e co nd it io ns of t ha t re le as e, bu t thi s arg um en t fa il s. Co lo ni al bre ach edsec ti on 16 (a) o f th e p art ic ip at io n a gr eem en t wh enit fai le d t o o bt ai n p erm is si on fro m Merc an ti le to waiv e th e requi rem en t o f pa ym en t of a m in im um rel eas e p ric e. Sect io n 1 6( a) o f th e p art ic ip at io n a gr eem en t s ta te d th atCo lo ni al co ul d n otm od ify the m at eri al ob li ga ti on s o f Cap e Haze un de r th e lo anag reem en t wi th ou t fi rs t o bt ai ni ng co ns en t fr om Merc an ti le , andth e lo an ag reem en t o bl ig edCap e Haze to pa y Co lo ni al a rel eas e p ric e o f atlea st$7 4,0 60 fo r eac h u ni t. Thi s o bl ig at io n was m at eri al be cau se th e acc ep tanc e o f a l owe r rel eas e p ric e in crea se d t he ris ki ne ss of t he lo an . Bran chBan ki ng de fen ds it s re le as e o f un it s fo r le ss th anth e rel eas e p ric e o n 9th e g ro un d t ha t i t was im po ss ib le to cal cu late th e co stof c on st ru ct in g e ach co nd om in iu m

un it , bu t thi s ar gu m en t fa il s. Alt ho ug h t he lo anag reem en t re qu ire d Co lo ni al to acce ptno les s than 1 25 pe rcen t o f th e co stto co ns tru ctth e co nd om in iu m

un it , th e ag reem en t al so pro vi de d t ha t Cape Haze h adto pa y Co lo ni al at l eas t $ 74 ,06 0 p er u ni t. As t he di st ric t co urt fo un d, Co lo ni al rel eas ed 52 un it s fo r le ss th an$7 4,0 60 . Bran chBan ki ng als o a rg ue s tha t the reas on s C ol on ia l ac cep te d l owe r rel eas e p ric es were re as on ab le , bu t the so un dn es s o f th atbu si ne ss de ci si on is no t atis su e. Sect io n 1 6( a) o f th e p art ic ip at io n a gr eem en t fo rb ad e Co lo ni al fro m un il at eral ly m od ifyin g t he m at eri al rep aym en t o bl ig at io ns of C ap e Haze . The requi rem en t o f a m in im

um rel eas e p ric e was m at eri al be cau se itwas i nt en de d t o en su re tha t a s uf

fic ie ntam ou ntof t he lo anwou ldbe pa idfro m th e cl os in g o f eac h un it . C. Mer ca nt il e Did

No t Waiv e th e Right

to Obj ect to an All eg ed

Brea ch of

th e Par ti ci pa ti on Agr eemen t. Bran chBan ki ng arg ue s tha t M ercant il e wai ve d t he rig htto ob ject t o a n al le ge d b reac h o f th e p art ic ip at io n a gr eem en t wh enLon g a gr eedto ex te ndth e lo an with kno wled ge th atCo lo ni al ha d m is m an ag edth e lo an , bu t thi s ar gu m en t fa il s to o. Un de r Fl or id a la w, waiv er i s “ th e v ol un tary an d i nt en ti on al rel in qu is hm en t o f 10a kno wn ri gh t.” Sa credFam il y Inv s., In c. v. Do ral Supe rm kt , Inc ., 20 So . 3d41 2, 41 5 (F la . Dis t. Ct . App . 20 09 ) (i nt ern al qu ot at io n m ark s o mitte d) . Lon g d idno t

“ vo lu nt ar[i ly] an d i nt en ti on al [ly] rel in qu is h[ ]” the rig htto ob ject wh enhe ex te nd edth e m atur ity

of t he lo anbe cau se he “ rai se d ‘ser io us pro bl em s’ with h ow th e lo anha d b eenhand le d” an d “ wro te a bl is te rin g l ette r to Hog an[of Co lo ni al ], accu si ng Co lo ni al of m is m an ag em en t an d p ut ti ng Co lo ni al on no ti ce tha t [Me rcan ti le ] co ns id eredCo lo ni al to be inde fau ltof t he pa rti ci pa ti onag reem en t.” Inth e li gh t o f th is ev id en ce, the di st ric t co urt was en ti tl edto fin d t ha t Lo ng ’s de ci si on to ex te ndth e lo anm atur ity da te as a n “ acco m

m od at io n t o [C ap e Haze ] . . . [in ] a d ecl in in g m ark et ,” di d n otwaiv e th e ri gh t o f PNC Ba nk , as s uc ces so r to Mer can ti le , to su e Co lo ni al forbre ach of t he parti ci pa ti on ag reem en t. D. The Dis tr ic t Co ur t Di d N ot Cle ar lyErr

W he n i t Ca lc ul at ed

Damages. Bran chBan ki ng all eg es th atth e d is tri ctco urt erredinth ree ways whe n i t cal cu la te d d am ag es . Firs t, Br an chBan ki ng arg ue s tha t PNC Ban k was no t en ti tl ed to da m ag es be cau se Co lo ni al an d M erca nt il e ag reedto sh are t he ris k t ha t Cape Haze wo ul d d efau lton th e lo an . Seco nd , Bran chBan ki ng arg ue s tha t the di st ric t co urt m ad e to o m any

ass um pt io ns incal cu la ti ng th e d am ag es ari si ng fro m th e acce pt an ce o f in su ffi ci en t re le as e p ric es . Thir d, Br an chBan ki ng ch al le ng es th e awardof p reju dg m en t i nt eres t t o P NC Ban k. Each of t he se co nt en ti on s fa il . 11The pa rti ci pa ti on ag reem en t p ro vi de d t ha t Co lo ni al was l iabl e fo r it s m at eri al

br each es of t he ag reem en t, an d t he di st ric t co urt fo un d t ha t the da m ag es PNC Ban k s uf fere d wer e cau se d b y

th e b reac h o f th e p art ic ip at io n a gr eem en t, n otby ba d m ark etco nd it io ns th atne ithe r pa rty cou ldha ve for es een . PNC Ban k i s en ti tl edto da m ag es be cau se Co lo ni al tra ns fo rm eda “pr ud en tl y un de rwri tt enlo an. . . in to anen ti rel y

reck le ss act ” whe n i t u ni la te ral ly alte redth e “ fund am en ta l t erm s an d c on di ti on s o f th e lo an .” Pen th ou se Int ’l LTD v. Do m in io n F ed . & Sav . Loan Ass ’n, 85 5 F .2d96 3, 9 81 (2dCir . 19 88 ). Bran chBan ki ng fai ls to ex pl ai n h ow the di st ric t co urt cl earl y erre d i n i ts cal cu la ti on of d am ag es ba se d o n t he acce pt an ce o f in su ffi ci en t re le as e p ric es . The di st ric t co urt d et erm in edth atCo lo ni al bre ach edth e p art ic ip at io n a gr eem en t wh en itacce pt edrel eas e p ric es be lo w $7 4,0 60 for52 un it s. Th e d is tri ctco urt the n co ns id eredth e sh ortfa ll foreachof t he 52 un it s an d m ul ti pl ie d t he to ta l s ho rtf

al l by the lo anpa rti ci pa ti on pe rcen ta ge own edby Mercan ti le an d a rri ve d a t $ 71 1,7 16 . Bran chBan ki ng arg ue s tha t PNC Ban k “ do ub l[y] reco ve r[ed ]” whenit rece iv edpre

jud gm en t i nt eres t fr om

Octo be r 20 , 20 07 , th ro ug h Dec em be r 20 , 20 07 , bu t thi s ar gu m en t i s b as edon th e erro ne ou s as su m pt io n t ha t PNC Ban k rece iv edco nt ractua l i nt eres t p aym en ts fro m Cap e Haze du rin g t he pre jud gm en t pe rio d. Th e d is tri ctco urt fo un d t ha t Cape Haze fa il edto pa y an y co nt ractua l 12in te res t dur in g t he pre jud gm en t p eri od , andBran chBan ki ng do es no t ch al le ng e th atfin di ng . In i ts rep ly brie f, Bran chBan ki ng arg ue s tha t PNC Ban k wi ll reco ve r in te res t p aym en ts an d l at e fee s fr om Cap e Haze inth e fu ture, b utanarg um en t m ad e fo r th e fi rs t t im e in a rep ly brie f is waiv ed . Uni te d S ta te s v . Dict er, 1 98 F.3d 12 84 , 12 89 (11 th Cir . 19 99 ). IV. CONCLUSI ON W e AFFIRMth e jud gm en t ag ai ns t Br an chBan ki ng forth e awardof da m ag es of $ 71 1,7 16 ba se d o n t he bre ach of s ect io n 1 6( a) o f th e lo anpa rti ci pa ti on ag reem en t b y

Co lo ni al . W e REVERSE th e jud gm en t ag ai ns t Br an chBan ki ng for th e awardof d am ag es of $ 7,2 98 ,60 0 b as edon th e d eci si onof C ol on ia l t o p erm it Cap e Haze to co ns tru ctm or e th an92 un it s s im ul tane ou sl y . W e REMAND for furth er p ro ceed in gs co ns is te ntwith t hi s o pi ni on . W e AFFIRMinpa rt, REVERSE inpa rt, REMAND forfurth er pr oc eed in gs co ns is te ntwith t hi s o pi ni on .

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