Parker Plaza West Partners, a Texas General Partnership v. Unum Pension and Insurance Company, F/k/a Union Mutual Pension and Insurance Corporation

BARKSDALE, Circuit Judge:

In this Texas diversity action, UNUM Pension and Insurance Company appeals an adverse summary judgment. The district court held that UNUM, as lender, was precluded, as a matter of law, from enforcing a contract provision for collection of a prepayment premium upon default and acceleration of its loan. The holding was based solely on the fact that the prepayment was involuntary on the part of the borrower. This is the limited issue before us. We REVERSE and REMAND.

I

In 1982, UNUM loaned Pearcy/Christon, Inc. $3.2 million, secured by real property (a shopping center) in…