01-1757 First Bank & Trust, et al. v. Firstar Information Services

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“After considering the text of the agreements, we conclude that the contracts are susceptible to reasonable alternate interpretations thereby rendering them ambiguous. Although we cannot accept the proposition that Section 7 only permitted the termination of a single service, beyond that point, reasonable people could differ concerning the precise scope of the phrase ‘may terminate providing any Service.’ It is plausible to read this provision to permit the termination of all services. At the same time, the location of the phrase, along with other factors, would permit a reasonable person to conclude that Firstar only could terminate a range of services but not all services. Because a resort to extrinsic evidence is warranted to resolve these ambiguities, resolution of this case on summary judgment is inappropriate. Moreover, the trier of fact, not this court, must resolve the conflicting interpretations of the agreement. Because the contracts are ambiguous, we remand the case to afford both parties the opportunity to submit extrinsic evidence to explain, but not contradict, the meaning of Section 7.”

Reversed and remanded.

Appeal from the United States District Court for the Northern District of Illinois, Darrah, J., Ripple, J.