Aberdeen Developers, LLC v. Wells Fargo Bank, N.A.

Federal 7th Circuit Court
Civil Court
Breach of Contract
Citation
Case Number: 
No. 25-1667
Decision Date: 
May 28, 2026
Federal District: 
N.D. Ill., Eastern Div.
Holding: 
Reversed and remanded.
Judge: 
SCUDDER

Plaintiff secured a loan from defendant by offering a mixed-use building as collateral. After one of the building’s largest tenants filed for bankruptcy, a dispute arose regarding how long the loan servicer could hold excess building revenue in a special account as additional security. The district court dismissed the plaintiff’s breach of contract claim and plaintiff appealed. The Seventh Circuit reversed and remanded, finding that the agreements in question were ambiguous and that a breach of contract claim cannot be resolved on a motion to dismiss where the language of a contract is ambiguous. (RIPPLE and ST. EVE, concurring)