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Banks & Banking

Dec 14, 2022

Banks & Banking – Loan Negotiations – Capital Gains Deferral Period – Duty to Negotiate in Good Faith

Where the parties had no binding loan agreement, the defendant-bank is not liable for failing to tell the plaintiff-borrower how much of an equity injection would result in loan approval. The court declines to address whether a claim for breach of a duty to negotiate in good faith is cognizable in North Carolina. We affirm […]

Apr 7, 2017

Landlord/Tenant – Commercial Lease – Assumption – Banks & Banking – Receivership

Southeastern Real Estate & Discount Co. v. Bank of North Carolina (Lawyers Weekly No. 012-066-17, 6 pp.) (Ann Marie Calabria, J.)  Appealed from Transylvania County Superior Court (Yvonne Mims Evans, J.) N.C. App. Unpub. Holding: The complaint alleges that, after plaintiffs’ first tenant went into receivership, defendant assumed the defunct tenant’s lease and paid rent […]

Oct 11, 2012

Banks & Banking – Tort/Negligence – Business Judgment Rule – Ordinary Negligence – Civil Practice – Motion to Strike – Affirmative Defense – Failure to Mitigate Damages

Federal Deposit Insurance Corp. v. Willetts This court previously denied defendants’ motion to dismiss based on its determination that, should defendants’ actions be determined to fall beyond the scope of the business judgment rule, they will be judged against an ordinary prudent person standard. The court stands by its ruling.

Oct 11, 2012

Tort/Negligence – Breach of Fiduciary Duty – Banks & Banking – Financial & Development Advisor – Real Property – Civil Practice – Venue

WNC Holdings, LLC v. Alliance Bank & Trust Co. Where the defendant-bank acted as a financial and development advisor to the plaintiff-borrower, the bank owed the borrower a fiduciary duty.

Oct 10, 2012

Tort/Negligence – Breach of Fiduciary Duty – Banks & Banking – Financial & Development Advisor – Real Property – Civil Practice – Venue

WNC Holdings, LLC v. Alliance Bank & Trust Co. Where the defendant-bank acted as a financial and development advisor to the plaintiff-borrower, the bank owed the borrower a fiduciary duty. Defendants’ motions to dismiss are granted in part and denied in part. The bank’s motion to change venue is granted.

Sep 18, 2012

Contract – Unfair Trade Practices Claim – Commercial – Promissory Note – Banks & Banking

SunTrust Bank v. Bryant/Sutphin Properties, LLC Although defendants contended that the plaintiff-bank committed unfair practices separate from the parties’ contracts, in alleging these “separate” acts, defendants were really claiming that the bank acted outside of its authority under the contract; this is a breach of contract. Since the jury found that the bank had not breached the [...]

Aug 31, 2012

Tort/Negligence – Fraud & Unfair Trade Practices – Real Property – Mortgages – Banks & Banking – ILSA

Synovus Bank v. Karp In their counterclaims, the defendant-borrowers contend that the plaintiff-bank lent money to unqualified individuals to buy property, knowing the property was overvalued and, in some cases, knowing that the individuals would not be able to make payments on these loans once their interest-only periods ended, in order to stimulate short-term revenue. While the bank’s[...]

Jun 27, 2012

Tort/Negligence – Banks & Banking – Breach of Fiduciary Duty Claim – Embezzlement by Customer’s Agent

Global Promotions Group, Inc. v. Danas, Inc. Plaintiffs hired an accounting services firm to handle certain financial aspects of plaintiffs’ businesses, and agents of the firm embezzled from plaintiffs. Plaintiffs’ allegations do not state claims against the defendant-bank or its employee.

May 23, 2012

Tort/Negligence – Fraud & Negligent Misrepresentation – Civil Practice – Pleading Specificity – Reasonable Reliance – Real Property – Value – Banks & Banking

Julian v. Wells Fargo Bank, N.A. Not only did plaintiffs fail to specify which employees of defendant Southeastern Waterfront Marketing, Inc. made false representations to them, but plaintiffs also claimed to rely on predictions of future increases in the value of the land they decided to buy. Plaintiffs failed to state a claim of fraud against Southeastern.

May 23, 2012

Banks & Banking – FIRREA – Exhaustion of Administrative Remedies – First Impression — FDIC Receivership – Purchase – Tort/Negligence — Real Property – Breach of Contract

Front Street Construction, LLC v. Colonial Bank, N.A. The Federal Deposit Insurance Corp. (FDIC), as receiver for failed bank Colonial Bank, N.A., entered into a purchase and assumption agreement (PAA) with Branch Banking and Trust Co. Some of plaintiffs’ claims against BB&T arose from acts or omissions by Colonial and were not addressed in the PAA. As to those claims, plaintiffs must e[...]

May 22, 2012

Banks & Banking – FIRREA – Exhaustion of Administrative Remedies – First Impression — FDIC Receivership – Purchase – Tort/Negligence — Real Property – Breach of Contract

Front Street Construction, LLC v. Colonial Bank, N.A. The Federal Deposit Insurance Corp. (FDIC), as receiver for failed bank Colonial Bank, N.A., entered into a purchase and assumption agreement (PAA) with Branch Banking and Trust Co. Some of plaintiffs’ claims against BB&T arose from acts or omissions by Colonial and were not addressed in the PAA. As to those claims, plaintiffs must [...]

Apr 26, 2012

Banks & Banking – Tort/Negligence – FIRREA – Corporate – Officer & Director Liability – Gross Negligence – Business Judgment Rule

Federal Deposit Insurance Corp. v. Willetts Plaintiff alleges that the defendant-officers and directors of Cooperative Bank permitted a lax loan approval process, that state and federal regulators repeatedly warned defendants about risks associated with a high concentration in speculative loans, and that defendants continued to focus on real estate lending after 2007 when they should have[...]

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