Justia Banking Opinion Summaries

The case revolves around a dispute between Treslong Dairy, LLC, First Merchants Bank, the Earl Goodwine Trust, and Jeffrey and Kathie Foster. Treslong Dairy had executed promissory notes with all parties, granting them security interests in various properties. After Treslong defaulted on its note with the Bank, the Bank sued to collect its debt. The Trust and the Fosters (collectively “Farmers”) intervened in the action. When Treslong failed to sell its property, the Bank sought final judgment on its unpaid balance. The Bank sold the haylage and corn silage for $230,000, which was insufficient to satisfy the full judgment. As junior lienholders, the Farmers received no proceeds from the sale. The Farmers then sued the Bank for money damages, claiming that the sale was not conducted in a commercially reasonable manner.The trial court granted the Bank's motion to dismiss the Farmers' case under Rule 41(E), which allows for dismissal of a civil case for a party's failure to move the case along. The Farmers appealed, arguing that the Bank's motion was untimely for Rule 41(E) purposes. The Court of Appeals reversed the trial court's decision as to Rule 41(E) but affirmed based on laches.The Indiana Supreme Court agreed with the Farmers. It held that the Bank's motion for dismissal under Rule 41(E) was untimely because it was filed after the Farmers had resumed prosecution by requesting a case-management conference. Therefore, the case could not be dismissed under that rule. The court also rejected the Bank's alternative argument that the equitable doctrine of laches applied. The court reversed the lower court's dismissal order and remanded for proceedings consistent with its opinion. View "Foster v. First Merchants Bank, N.A." on Justia Law

The Indiana Supreme Court heard a case involving a dispute between Tonia Land and the IU Credit Union (IUCU). When Land became a customer at the credit union, she was given an account agreement that could be modified at any time. Later, when she registered for online banking, she accepted another agreement that allowed the IUCU to modify the terms and conditions of the services. In 2019, the IUCU proposed changes to these agreements, which would require disputes to be resolved through arbitration and prevent Land from initiating or participating in a class-action lawsuit. Land did not opt out of these changes within thirty days as required, which, according to the IUCU, made the terms binding. However, Land later filed a class-action lawsuit against the credit union, which attempted to compel arbitration based on the addendum.The court held that while the IUCU did provide Land with reasonable notice of its offer to amend the original agreements, Land's subsequent silence and inaction did not result in her assent to that offer, according to Section 69 of the Restatement (Second) of Contracts. The credit union petitioned for rehearing, claiming that the court failed to address certain legal authorities and arguments raised on appeal and in the transfer proceedings.Upon rehearing, the court affirmed its original decision, rejecting the credit union's arguments. However, the court also expressed a willingness to consider a different standard governing the offer and acceptance of unilateral contracts between businesses and consumers in future cases. The court found no merit in the credit union's arguments on rehearing and affirmed its original opinion in full. View "Land v. IU Credit Union" on Justia Law

The Supreme Court reversed the judgment of the trial court granting a motion to compel arbitration brought by Defendant Star Financial Group, Inc. in this class-action complaint alleging that Defendant collected improper overdraft fees, holding that Plaintiffs' account agreement did not allow Defendant to add an addendum to the terms and conditions of the account agreement.When Plaintiffs opened their checking account they assented to an account agreement detailing the terms and conditions of their relationship with Defendant. Before Plaintiffs brought this suit Defendant added an arbitration and no-class-action addendum to the terms and conditions of Plaintiffs' account agreement. When Plaintiffs filed this lawsuit Defendants cited the addendum and filed a motion to compel arbitration. The trial court granted the motion. The Supreme Court reversed, holding that Plaintiffs were not bound by the arbitration addendum to their account agreement because the account agreement's change-of-terms provision did not allow Plaintiff to add the addendum. View "Decker v. Star Financial Group Inc." on Justia Law

CitiMortgage, Inc. obtained a judgment of foreclosure against the family homestead of Homeowners - husband and wife. Homeowners attempted to appeal without legal representation. The Court of Appeals dismissed the attempted appeal with prejudice because of defects in Homeowners’ filings. Homeowners filed a petition to transfer, which the Supreme Court initially denied. On reconsideration, the Court vacated the order denying transfer and assumed jurisdiction over this appeal. The Court then affirmed the judgment of the trial court, holding that, under the facts presented in this case, the trial court correctly granted summary judgment in favor of CitiMortgage. View "McCullough v. CitiMortgage, Inc." on Justia Law