Opinion ID: 1184357
Heading Depth: 4
Heading Rank: 2

Heading: Appellees' breach

Text: Ficke also argues that there were more instances of breach by the appellees than the superior court found. We agree with several of his points. First, the record shows the $150,000 payment, due August 15, 1970, to have been tendered on September 10. But the tender was conditioned upon Ficke's agreement to a ninety-day extension of the appellees' time for performance. Second, the note for the balance due on the health club was not tendered until November 23, 1970. [2] Third, leases to two of the lots near the hotel upon which Ficke was to build condominiums were never freed of a security interest attaching from a loan to Alyeska. Consent of lenders and lessors. On the other hand, we can find no clear mistake in the superior court's conclusion that the limited consents obtained by the airline from its lenders and lessors did not breach the June agreement. On directly conflicting evidence the trial court found that Ficke knew of the limited consents before he accepted the initial $200,000 cash payment and entered the escrow agreement. Proceeding with the sale with knowledge that the airline was prohibited by these consents from expending funds or assuming obligations waives any condition that unqualified approval be obtained. Delegation of duties. Nor can we find clear error in the superior court's conclusion that the airline's rights and obligations under the June contract were assignable, in part, to its subsidiary, Resort. Ficke contends there was no agreement that the airline could delegate its obligations to assume the hotel loans and procure Ficke's release from personal liability on them. The contract provides in part: (16) Miscellaneous: . . . . . . (b) Although this Agreement may be assigned by Buyer to a third party, the employment contract of C. Bruce Ficke ... will be between Seller and Alaska Airlines, Inc. In addition, the record bears testimony that Ficke knew of the airline's intention to assign its interest to a subsidiary at the time the contract was formed. If Ficke knew, as the court found, that the airline was prohibited by the limited consents from expending funds or assuming obligations, then in accepting the $200,000 payment from Resort he must have intended to allow these obligations to be discharged by the subsidiary. Indeed, the escrow agreement which Ficke and the airline signed upon tender of the $200,000 recognizes a delegation of duties to Resort. [3] On this evidence, it was not clearly erroneous for the superior court to find an intention that part of the airline's obligations were delegable to Resort. Interest payments. Finally, Ficke claims that the appellees failed to keep interest payments on the hotel loans current. A promise to this effect arose out of the December accord. The parties agreed prior to trial that they claimed no benefits of promises made under the accords. Instead, they elected to litigate their rights under the June agreement. Accordingly, because the appellees did not promise in the June agreement to keep the hotel loans current, the failure to undertake this obligation cannot be asserted as a breach. Ficke was entitled on the evidence to the superior court's findings that the airline did not use its best efforts to secure registration of the bonus stock and was not prepared to release Ficke from liability on the hotel notes until March, 1971. In addition, the court should have concluded, (1) that the late tender of the $150,000 cash payment was conditioned upon an extension of the time for performance of other terms of the agreement; (2) that the note for purchase of the health club was not tendered until November, 1970; and (3) that leases to two of the four lots were never freed of security interests.