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This section contains the nature of the case and procedural background.

Teachers (P) signed a commitment letter with Butler (D) for the financing of a building That letter was a 35-year commitment for $20,000,00 at 14.25% per annum secured by a first deed on the building. This was done on September 9, 1982. P was also granted a contingent interest in the rental returns and D was precluded from repayment for the first 17 years and a prepayment premium of 6% from the 18 year forward. The proper take out construction financing was arranged with Bank of America. D built the building, and around 1984, all documents were prepared for closing, and all disagreement were resolved but the language used in the Default Prepayment Fee Language. D then signed all the closing documents on April 30, 1984, and penciled out the Default Prepayment Fee Language and indicated they would not take the loan unless those clauses were struck from the deal. P then sued for a breach of contract. It is sufficient to note that interest rates were in a precipitous decline and that note rates were basically in a free fall of close to 2.5 -3.0 points during the time of construction and that even P's rates fell from 14.25% to 11.89% during this period. D counterclaimed.

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