Bowling Green Sports Center, Inc. v. G.A.G. LLC

In dispute between senior lender and junior lender, both lenders executed an intercreditor agreement aht provided that junior lender would not sue to recover any money from Defendants until Defendants had repaid senior lender in full.  That agreement also provided that senior lender would not increase its loan to Defendants without first receiving junior lender's consent, but senior lender violated that provision, lending additional $51,000 (1.5%); and junior lender sued senior lender for breach of contract.Because this contract breach minimally impaired junior lender's rights, proper remedy is to deny priority to that amount, and not to subordinate senior lender's entire lien.(JORGENSEN and SPENCE, concurring.)