Court Opinion

ID: 9452803
Source: CourtListenerOpinion
Date Created: 2023-08-04 17:52:34.392926+00
Date Added: 2024-06-11T17:33:22.000531
License: Public Domain

*914DUNIWAY, Circuit Judge
(concurring) :
I concur. The agreement does not assign a present interest in the note or the obligation that it represents. The pertinent provision is paragraph 3 of the three-way agreement.1 The assignment is only of “such amounts payable under said obligation as Kent-Reese Enterprises, Inc. may become obligated to pay,” and the purported assignment of this uncertain and contingent amount is “subject to the condition subsequent that any such loss or liability occur, the assignment then to become finally effective and in force.” The phrase “condition subsequent” is obviously erroneous. The legal effect of the language of the paragraph is to impose a condition precedent, because it is expressly stated as a condition that “such loss or liability occur,” and the assignment is “then to become finally effective and in force.” The ascertainment of the amount, as well as the occurrence, of the loss or liability, and therefore the effectiveness of the assignment, were within four months of the bankruptcy.

. “BIG BOY MARKETS, INC., in consideration of the foregoing, agrees to hold KENT-REESE ENTERPRISES, INC., free and harmless from any loss or liability under the above agreement and as security therefor does hereby grant to KENT-REESE ENTERPRISES, INC., the right to a credit upon its PROMISSORY NOTE obligation evidenced by the May 1, 1959, promissory note in the sum of Eifty-four Thousand ($54,000.00) Dollars, hereby assigning to KENT-REESE ENTERPRISES, INC., such amounts payable under said obligation as KENT-REESE ENTERPRISES, INC., may become obligated to pay to RAYMOND DOUGLASS and/or JOAN DOUGLASS and/or ROBERT REESE by reason of its guarantee set forth above, this assignment being subject to the condition subsequent that any such loss or liability occur, the assignment then to become finally effective and in force.”