Hyland Hills Metropolitan Park and Recreational Dist. v. McCoy Enterprises, Inc.
| Decision Date | 27 May 1976 |
| Docket Number | No. 75--585,75--585 |
| Citation | 554 P.2d 708,38 Colo.App. 23 |
| Parties | , 20 UCC Rep.Serv. 488 HYLAND HILLS METROPOLITAN PARK AND RECREATIONAL DISTRICT, a Quasi-Municipal Corporation, Plaintiff-Appellee, v. McCOY ENTERPRISES, INC., a Colorado Corporation, Defendant, The Central Bank and Trust Company, a Colorado Banking Corporation, Defendant-Appellant. . II |
| Court | Colorado Court of Appeals |
William Pehr, Westminster, for plaintiff-appellee.
Paul V. Rupp, Denver, for defendant-appellant.
The plaintiff District sought recovery of $8000 from McCoy Enterprises, Inc., and The Central Bank and Trust Company for breach of contract. McCoy confessed judgment. The Bank appeals from judgment entered against it in the amount prayed for in the complaint. We reverse.
The facts are undisputed. The District granted a sewer easement to McCoy, in consideration for which McCoy agreed to build two tennis courts for the District on or before January 5, 1974, or, if it failed to do so, to pay the District $8000 to be used for that purpose. To secure payment of that sum, McCoy executed and delivered to the Bank its note in that amount and obtained from the Bank an Irrevocable Letter of Credit, addressed to the District, under which the Bank agreed to honor drafts of the District up to $8000, 'covering construction of two (2) tennis courts . . . on or before January 5, 1974.' The letter of credit then provided:
'DOCUMENTS REQUIRED:
Your (the District's) signed statement that any drawing under this credit is in connection with construction of two (2) tennis courts on or before January 5, 1974 in Westminster, Colorado or your signed statement dated January 5, 1974 and presented on that date that your drawing is in connection with failure by McCoy Enterprises Inc., to construct two (2) tennis courts in Westminster, Colorado on or before January 5, 1974.'
The letter, dated March 16, 1973, was delivered to and accepted by the District.
The above quoted terms were typed on a printed form. As part of the printed terms, the Bank agreed to honor drafts drawn in compliance with the terms of the credit 'if drawn and presented for negotiation on or before _ _.' The letter of credit, as delivered to the District, contained no date in the blank space.
McCoy did not build the tennis courts. The District called the Bank in mid-January 1974 about the letter of credit and was informed that the letter had expired. On April 8, 1974, the District submitted to the bank its statement regarding McCoy's failure to build the courts and attempted to draft $8000 against the letter. The Bank refused to honor the letter, asserting it had expired on January 5, 1974. This suit followed.
The issue here is Helmericks v. Hotter, 30 Colo.App. 242, 492 P.2d 85. Further, in construing a document, courts must enforce the document as written, and are not at liberty to rewrite the contract for the parties. Yamin v. Levine, 120 Colo. 35, 206 P.2d 596, Helmericks v. Hotter, supra.'
In its findings and conclusions the trial court, after quoting the language of the letter of credit, stated,
This conclusion is not in conformity with the...
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