SK Food Corporation, et. al., v. First Bank

Three corporations approached a lender seeking to refinance an existing loan secured by a deed of trust on certain commercial properties. The parties entered an agreement specifying that the lender’s security interest would be a “first lien deed of trust” and requiring the borrowers to pay a nonrefundable “commitment fee.” The borrowers executed the agreement and paid the commitment fee, but the loan did not close due to the discovery of a prior lien on one of the properties. The borrowers filed suit against the lender for damages arising out of the lender’s refusal to lend or to refund the commitment fee. The trial court granted the lender’s motion for summary judgment but denied the lender’s request for attorneys’ fees. Discerning no error, we affirm.