deNourie & Youst Homes, LLC v. Frost

Debtors contracted with Builder to finish construction on a house. After Debtors defaulted on progress payments, Builder sued Debtors and Bank, claiming that Defendants falsely represented or concealed material information about whether Debtors could pay for the work. The district court sustained Defendants’ motions for summary judgment on Builder’s fraud and conspiracy claims. Debtors then confessed judgment on Builder’s breach of contract claim. After a bench trial, the district court ruled for Defendants on Builder’s equitable and promissory estoppel claims. The Supreme Court affirmed in part and reversed in part, holding (1) the court erred in granting summary judgment to Debtors on Builder’s fraud claim and to Debtors and Bank on Builder’s civil conspiracy claim; and (2) during trial, the court did not err in finding that Builder had failed to prove by clear and convincing evidence that Bank promised to fund Builder’s work that was definite enough to induce Builder’s foreseeable reliance on the statement, but these factual findings did not preclude Builder’s proof of the same facts for its fraud claims. Remanded. View "deNourie & Youst Homes, LLC v. Frost" on Justia Law