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Tag Archives: Banks & Banking

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

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.

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

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.

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Contract – Unfair Trade Practices Claim – Commercial – Promissory Note – Banks & Banking (access required)

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 parties’ contracts, the trial court should not have concluded that the bank violated G.S. § 75-1.1.

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Tort/Negligence – Fraud & Unfair Trade Practices – Real Property – Mortgages – Banks & Banking – ILSA (access required)

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 alleged conduct may not appear to have been the most prudent course of action in terms of the bank’s long-term business interests, this does not mean that such conduct is not plausible as a matter of law.

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

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.

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

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.

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

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 exhaust their administrative remedies under the Financial Institutional Reform, Recovery and Enforcement Act (FIRREA) before they can seek judicial remedies.

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

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 exhaust their administrative remedies under the Financial Institutional Reform, Recovery and Enforcement Act (FIRREA) before they can seek judicial remedies.

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