Opinion ID: 535587
Heading Depth: 2
Heading Rank: 2

Heading: Performance of the Agreements

Text: 13 In light of the new May 31, 1988 closing deadline, the appraisal, survey, financial statements, and other documents that the Commitment Letter required Towers to furnish were due not later than May 1. By May 5, however, Towers had not yet provided these materials, and Cadillac had attempted to make its own arrangements for an appraisal. On that date its attorneys wrote Towers's attorneys as follows:As you know, we have requested David Pascoe of D.H. Pascoe & Co., Inc. perform an appraisal of the MARCO POLO pursuant to the terms of the Commitment Letter. Mr. Pascoe has been denied access to the vessel. Access is necessary to complete the appraisal. We understand, from our conversation of May 5, 1988, that you will do the necessary to obtain immediate access for Mr. Pascoe. Kindly contact this office as soon as possible with a date and time when Mr. Pascoe can inspect the vessel. 14 Towers's attorneys responded in a letter dated May 9, 1988, stating, inter alia, that an appraisal by Pascoe was unnecessary because Cadillac's attorneys had already approved Towers's own appraiser, one Patton, and that 15 subject to the delivery to you of an appraisal letter and an opinion ... with respect to the ownership and title to the Marco Polo, all open items have been resolved and our client is in full compliance with its obligations pursuant to the commitment letter dated January 11, 1988 and is prepared to close this transaction upon delivery to you of such documents. 16 Cadillac's attorneys replied in a letter dated May 12, 1988, that (a) pointed out several respects in which Towers had not yet fulfilled its obligations, and (b) stated that they had not approved Patton as an appraiser  but had only voiced no objection to his retention as a surveyor. (Emphases in original.) The letter continued: 17 In any event, we have not yet received a survey report, nor any report of any kind from Mr. Patton. As you know, pursuant to paragraph 1(e) the survey report was supposed to be delivered to Cadillac at least thirty days prior to the loan closing. Unless we are immediately provided with a complete survey/inspection report in form and substance satisfactory to Cadillac, ... Cadillac will proceed to retain its own surveyor to survey the vessel. 18 The May 12 letter also pointed out that the Commitment Letter required Towers to furnish [n]ot less than thirty (30) days before the closing date ... [a]n appraisal report prepared at the request of Lender  (emphasis in original), and that 19 it was [Towers's] delay in providing an appraisal, after repeated promises, that prompted Cadillac to retain its own appraiser. Had Cadillac not proceeded to retain its own appraiser, we would have no assurance of receiving a satisfactory appraisal prior to the May 31 expiration of the escrow agreement. 20 The letter stated that there would be no closing until Cadillac had received the satisfactory appraisal to which it was entitled and until all of the other terms and conditions of the Commitment Letter had been met. 21 A further exchange of letters on May 25 reiterated each side's position. The May 31 deadline passed without Towers's having furnished a satisfactory appraisal or any of the other required documents. There was no closing, and on June 1, 1988, Cadillac demanded return of the escrowed funds. On May 26, however, Hoffenberg had instructed the escrow agent not to return the escrowed funds to Cadillac. The funds were not returned. 22 On June 9, Cadillac sent Towers a demand for payment of the Note. Payment was not forthcoming.