Justia Banking Opinion Summaries

Plaintiffs-Appellants Bryan and JoLynne Toone executed a promissory note secured by a deed of trust on their home. The note was assigned several times. After the Toones defaulted on the Note, their home was scheduled to be sold at a trustee’s foreclosure sale. They filed suit to halt the foreclosure and to obtain damages and declaratory relief based on alleged violations of statutory and common-law duties by numerous parties who had current or prior interests in the Note and Trust Deed or were involved in the foreclosure efforts. The district court denied relief and the Toones appealed. Finding no abuse of the district court's discretion in denying the Toones relief, the Tenth Circuit affirmed the lower court's decision. View "Toone v. Wells Fargo Bank, N.A." on Justia Law

Premier Capital, LLC was in the business of debt acquisition, management, and collection. On July 3, 2007, Premier filed an action in the superior court alleging that it was the current holder of a sealed promissory note from Max Zeller Furs, Inc., executed on September 10, 1987, and that KMZ, Inc. was liable on the note as the successor in interest. The superior court granted summary judgment for KMZ on the ground that Premier's complaint was not timely filed under the six-year statute of limitations set forth in Mass. Gen. Laws ch. 106, 3-118. The Supreme Court reversed, holding (1) although the statute does apply to actions on a sealed promissory note, it only applies to causes of action accruing after its enactment in 1998; and (2) because Premier's cause of action accrued before the statute was enacted, and the note upon which Premier filed suit was executed under seal, Premier timely commenced its action against KMZ under the twenty-year statute of limitations governing actions on contracts under seal set forth in Mass. Gen. Laws ch. 260, 1. Remanded. View "Premier Capital, LLC v. KMZ, Inc." on Justia Law

The Federal Trade Commission secured a judgment of $10,204,445 against Sussman and his co-defendants and equitable relief, based on abusive debt collection activities. Sussman subsequently entered a safe deposit box and removed coins that had been “frozen” in connection with the earlier action; he was then convicted of theft of government property, 18 U.S.C. 641, and obstruction of justice, 18 U.S.C. 1503(a) and sentenced to 41 months on each count, to be served concurrently, followed by three years of supervised release. The court also imposed a $15,000 fine and a $200 special assessment. The Third Circuit affirmed, rejecting a challenge to the sufficiency of the evidence and a clam that Sussman should be afforded a new trial because a portion of the trial transcript is unavailable, apparently because a court reporter lost the transcript. The court upheld the admission into evidence of redacted documents from the FTC’s prior civil case and jury instructions on the elements of obstruction of justice and Sussman’s theory of defense. View "United States v. Sussman" on Justia Law

Dorothy Halstein suffered from dementia. She owned a home worth between $235,000 and $320,000. While suffering demential, she owed approximately $75,000 to Washington Mutual Bank (WaMu), secured by a deed of trust on her home. Because of the cost of her care, her guardian did not have the funds to pay her mortgage. Quality Loan Services, acting as trustee of the deed of trust, foreclosed on her home. Quality sold the home for $83,087.67, one dollar more than Ms. Halstein owed. A notary falsely notarized the notice of sale by predating the notary acknowledgement. The falsification permitted the sale to take place earlier than it could have had the notice of sale been dated when it was actually signed. Before the foreclosure sale, Halstein's court-appointed guardian secured a buyer for her house willing to pay $235,000. There was not enough time before the scheduled foreclosure to close the sale with the buyer. Despite numerous requests, WaMu did not postpone the sale. A jury found that the trustee was negligent, and that the trustee's acts violated the Consumer Protection Act (CPA), and that the trustee breached its contractual obligations. The Court of Appeals reversed all but the negligence claim. Upon review, the Supreme Court reversed the Court of Appeals in part, and restored the award based on the CPA. View "Klem v. Wash. Mut. Bank" on Justia Law

Wells Fargo appealed from a district court decision affirming confirmation of a Chapter 11 cramdown plan. Debtors had obtained a loan from Morgan Stanley to renovate hotel properties and Wells Fargo eventually acquired the loan from Morgan Stanley. As a preliminary matter, the court held that the appeal was not equitably moot. On the merits, the court held that the bankruptcy court's 5% cramdown rate calculation on the basis of a straightforward application of the prime-plus approach was not erroneous. Accordingly, the court affirmed the judgment. View "Wells Fargo Bank National Assn v. TX Grand Prairie Hotel Realty, et al" on Justia Law

In 2006 a coal-mining company borrowed $7 million from Caterpillar secured by mining equipment. The company was also indebted to Peabody, for an earlier loan, and at Peabody’s request, transferred title to the same equipment, subject to Caterpillar’s security interest, to a Peabody affiliate. In 2008, Peoples Bank lent the mining company $1.8 million secured by the same equipment and filed a financing statement. Wanting priority, the bank negotiated a subordination agreement with Peabody. After the mining company defaulted, the bank obtained possession of the assets and told Caterpillar it would try to sell them for $2.5 million. Caterpillar did not object, but claimed that its security interest was senior. The bank sold the equipment for $2.5 million but retained $1.4 million and sent a check for $1.1 million to Caterpillar. Caterpillar neither cashed nor returned the check. The district court awarded Caterpillar $2.4 million plus prejudgment interest. The Seventh Circuit affirmed. The bank’s claim of priority derives from its dealings with Peabody. The bank did not obtain a copy of a security agreement for Peabody’s loan; a security interest is not enforceable unless the debtor has authenticated a security agreement that provides a description of the collateral. View "Caterpillar Fin. Servs. v. Peoples Nat'l Bank" on Justia Law

Fire Eagle appealed the district court's decision affirming a bankruptcy court's grants of summary judgment in two consolidated matters. The court held that the bankruptcy court's jurisdiction extended to the underlying adversary actions and declined to reverse the district court's holding to that effect. The bankruptcy court's entering an order in the two adversary proceedings without reference to the district court was within its statutory authority. There was no constitutional bar to the bankruptcy court's exercise of its jurisdiction over the two adversary actions. Venue was proper in the Western District of Texas. The transfer of venue of the Bischoff Adversary to the Western District of Texas was proper. Finally, the court affirmed the bankruptcy court's grant of summary judgment. View "Fire Eagle, L.L.C. v. Bischoff, et al" on Justia Law

Jack Bays, Inc. did site work on the construction of a new church (New Life). Jack Bays contracted with several subcontractors, eleven of which were parties to this action. New Life obtained additional funds for the project through three lenders. The Lenders were listed on the deed of trust for the new financing. After New Life stopped making to Jack Bays due to lack of funding, Jack Bays recorded its memorandum of mechanics' lien against New Life and terminated the construction contract. All Contractors timely filed complaints against the Lenders. The circuit court ordered that the property be sold at public auction with the proceeds to be applied in satisfaction of the mechanics' liens in the following order of priority: Subcontractors, Jack Bays, and Lenders. The Lenders appealed. The Supreme Court affirmed in part and reversed in part, holding that the circuit court (1) did not err in finding that Jack Bays' lien was valid; (2) was not plainly wrong in determining that the Contractors' liens had priority over the Lenders' deed of trust; but (3) erred in approving the sale of the entire parcel of land to satisfy the Contractors' liens, where no evidence was introduced to support this decision. Remanded. View "Glasser & Glasser, PLC v. Jack Bays, Inc." on Justia Law

Appellant Crafton, Tull, Sparks & Associates (CTSA) appealed an order of the circuit court finding that CTSA's lien was second in priority to Appellee Metropolitan National Bank's lien on certain property. The circuit court filed an order titled "Final Judgment and Rule 65(b) certificate" stating that certain parties and actions remained unresolved. CTSA then brought this appeal. Although neither party raised the issue, the Supreme Court sua sponte raised the question of whether the order was final and subject to appeal. The Court dismissed the appeal without prejudice, holding that there was no final order or a sufficient Ark. R. Civ. P. 54(b) certificate, and therefore, the Court lacked jurisdiction to hear the appeal. View "Crafton Tull Sparks & Assocs. v. Ruskin Heights, LLC" on Justia Law

Plaintiffs, Massachusetts residents, bought a three-dwelling in Massachusetts, financing the entire purchase price with two mortgage loans from Plaza Home Mortgage (Plaza). After the collapse of the housing market, Plaintiffs sued Plaza, alleging state common law and statutory violations in making the loans. The district court dismissed for failure to state a claim. The First Circuit Court of Appeals affirmed, holding (1) the district court correctly dismissed Plaintiffs' claim based on Plaza's alleged violation of the Massachusetts covenant of good faith and fair dealing; and (2) Plaintiffs' claim based on a violation of the Massachusetts consumer protection was correctly dismissed as time-barred. View "Latson v. Plaza Home Mortgage, Inc." on Justia Law