County of Yuba v. Central Valley National Bank, Inc.

The County of Yuba (County) appeals from a judgment following nonjury trial denying recovery upon its complaint filed against Central Valley National Bank, Inc. (Bank), for damages resulting from an alleged breach of an instrument of credit.

In 1961, C.G.O. Enterprises, Inc. (CGO) purchased a 60-acre parcel of unimproved, agricultural land located about six miles southwest of Marysville for the purpose of constructing inexpensive single-family residences for personnel at nearby Beale Air Force Base. A tentative map proposing a subdivision containing 298 lots was thereafter filed, and financial commitments were obtained from Bank.

The proposal was later revised to encompass merely a portion of the 60-acre parcel, containing 50 lots and designated Tract 120. County’s Board of Supervisors (Board) approved a final map of Tract 120 and accepted streets and easements offered therein for dedication on August 8, 1962.

Later, CGO initiated plans for construction of a similar development on the remaining portion containing 52 lots and designated Tract 131. On May 6, 1963, pursuant to Business and Professions Code section 11611, and a County ordinance, CGO and County executed a…