Opinion ID: 498009
Heading Depth: 2
Heading Rank: 4

Heading: The Change Order Payments

Text: 28 The Bank contends that Ballenger promised to remit $201,500 in change order payments earned by T & B on four occasions, in four letters. The Bank contends that Ballenger made these promises with the intent to induce the Bank to continue lending money to T & B, despite T & B's deteriorating financial condition. Ballenger contends that the Bank is not entitled to recover these change order payments. It asserts the district court's finding that the change order payments never became due to T & B because T & B's default on the interstate jobs eliminated its right to those funds. Ballenger contends that the money it received, relating to the change orders was received under Ballenger's prime contract with the DOT. Because the money was not received by Ballenger on behalf of T & B for work completed by T & B, the Bank has no entitlement to these funds. 29 The bankruptcy court found that no enforceable agreement existed between Ballenger and the Bank and that no evidence established an agreement by Ballenger to restrict in any way its financial assistance to T & B. In affirming these factual findings, the district court found that the Bank's claim, that the four letters from Ballenger constituted unqualified promises to remit $201,500 in change order payments earned by T & B, fails to foreclose Ballenger's right to set-off. 30 In considering the Bank's arguments on appeal, we are not convinced that the findings of the bankruptcy court and the district court are clearly erroneous. Therefore, we affirm the decision that the Bank is not entitled to the change order payments.