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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 […]
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 […]
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.
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.
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.
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 [...]
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[...]
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.
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.
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[...]
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 [...]
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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Commentary
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