Thank you for sharing!

Your article was successfully shared with the contacts you provided.

The full case caption appears at the end of this opinion.

Cudahy, Circuit Judge. Acequia, Inc., an Idahofamily farming operation, obtained a $4 millionloan from Prudential in 1977. The security forthe loan was Acequia’s 7,600 acres of farmproperty. The note was to mature on March 15,1992. In 1981, Acequia defaulted on the loan.Prudential began foreclosure proceedings, butAcequia filed for bankruptcy protection. For thenext two years, Acequia worked on areorganization plan; Prudential approved thisBankruptcy Plan (the Plan) and the bankruptcycourt confirmed it in 1984. But the two companiescontinued feuding, and in 1987, Acequia suedPrudential in Idaho state court because of adispute regarding the terms of the promissorynote required by the Plan. This dispute ended ina 1989 Settlement Agreement, under whichPrudential and Acequia agreed to extend thedeadline for Acequia to repay Prudential. TheSettlement Agreement called for the parties toexecute an amended and restated promissory note,which they did. Prudential maintains that as partof the Settlement Agreement, it agreed totransform the loan into a non-recourse loansecured only by the land. Under the SettlementAgreement parcels of land could be sold byAcequia, but only at minimum prices and underother prescribed conditions. It is unclear fromthe record exactly what recourse Prudentialoriginally had against Acequia, but there is nodispute that under the new Settlement Agreement,Prudential does not have in personam recourseagainst Acequia for the unpaid portion of theloan.

Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

More From ALM

Premium Subscription

With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now

Team Accounts

Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now

Bundle Subscriptions

Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now

New York Legal Awards 2022 (NYLA)

October 06, 2022
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.

Learn More

Women, Influence & Power in Law Awards (WIPLA) 2022

October 18, 2022
Washington, DC

Women, Influence & Power in Law Awards honors women lawyers who have made a remarkable difference in the legal profession.

Learn More

National Law Journal Legal Awards (NLJLA) 2022

October 20, 2022
Washington, DC

The National Law Journal honors attorneys & judges who've made a remarkable difference in the legal profession in the D.C. area.

Learn More

Corporate Counsel

An international entertainment company headquartered in the Sarasota area is seeking a corporate counsel to draft, review and negotiate a ...

Apply Now ›

Plaintiffs' Personal Injury Attorney

A growing and highly successful plaintiffs' personal injury law firm with several offices in Tampa Bay is seeking a senior attorney with tri...

Apply Now ›

Insurance Defense Associate

A highly regarded Tampa law firm is seeing an insurance defense attorney with 2+ years of general insurance-related litigation experience. ...

Apply Now ›



Chiesa Shahinian & Giantomasi : Commitment to the highest standards of service.

View Announcement ›


DR Web

Schulten Ward Turner & Weiss, LLP is pleased to announce that John Gracia has joined the firm as a partner.

View Announcement ›



WISNIEWSKI & ASSOCIATES LLC Takes pleasure in announcing that Civil Litigator DOUGLAS R. D ANTONIO has become a Partner of the Firm.

View Announcement ›