Justia Nebraska Supreme Court Opinion Summaries

Articles Posted in Banking
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The Supreme Court reversed the order of the district court that overruled Community First Bank's motion for summary judgment, sustaining First Central Bank McCook's motion for summary judgments and dismissing Community First's breach of contract claims, holding that genuine issues of fact existed precluding summary judgment.On appeal, Community First argued that the district court erred in determining that the contract between Community First and First Central was a participation agreement that did not create a debtor-creditor relationship between the two banks. The Supreme Court reversed and remanded the case for further proceedings, holding (1) the contract between the parties was ambiguous; and (2) a genuine issue of material fact existed regarding the provisions of the contract between the parties. View "Community First Bank v. First Central Bank McCook" on Justia Law

Posted in: Banking, Contracts
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The Supreme Court dismissal this appeal from an order of the district court denying Appellant’s request for a stay of an order of sale in a judicial foreclosure action, holding that the order denying the request for a stay was not appealable.The district court determined that Appellant and his former spouse owed Mutual of Omaha Bank $533,459, ordered an execution sale, and foreclosed Appellant and his former spouse from asserting any interest in the property. Mutual subsequently applied to and received from the district court a supplemental decree ordering that sums paid by Mutual that were not included in the initial decree be added to the amount due Mutual. After Appellant unsuccessfully requested a stay of the order of sale Appellant appealed. The Supreme Court dismissed the appeal for lack of appellate jurisdiction, holding (1) because a supplemental decree like the one at issue in this case does not give rise to a right to seek a statutory stay the district court’s order denying Appellant’s request for a stay did not affect an essential legal right; and (2) therefore, the order was not final, and this Court lacked jurisdiction to decide the appeal. View "Mutual of Omaha Bank v. Watson" on Justia Law

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The Supreme Court affirmed the judgment against Borrowers in this action brought by Bank seeking to recover a deficiency owed by Borrowers after it exercised powers of sale under deeds of trust. On appeal, Borrowers argued, among other things, that the district court erred in awarding an excessive verdict for Bank that was unsupported by the evidence. The Supreme Court disagreed, holding (1) there was sufficient evidence to support the amount of damages awarded by the district court; and (2) the district court did not err by refusing Borrowers’ requested jury instructions. View "First National Bank North Platte v. Cardenas" on Justia Law

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The Supreme Court affirmed the district court’s summary judgment orders that determined Mutual of Omaha Bank held a valid and enforceable deed of trust against Robert Watson’s homestead property. The court concluded that the primary deed of trust had first priority as an encumbrance on the property, ordered an execution sale, and foreclosed Watson from asserting any interest in the property. On appeal, Defendant argued that the district court erred in concluding that Watson and his then-spouse intended to encumber their homestead through the primary deed of trust. The Supreme Court held that, although its reasoning differed from the district court, the court did not err in finding that the primary deed of trust was valid and enforceable. View "Mutual of Omaha Bank v. Watson" on Justia Law

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Linda Clarke filed suit against First National Bank of Omaha (FNB) alleging that she, rather than Gregg Graham, was the owner of a certificate of deposit. FNB filed a third-party action seeking recovery against Graham to the extent FNB was liable to Clarke. The parties filed competing motions for summary judgment. The district court granted summary judgment for Clark against FNB and in favor of FNB against Graham. Graham filed a motion for new trial. Before the court had ruled on the motion, Graham filed his notice of appeal. FNB filed a motion for summary dismissal, arguing that the court of appeals lacked jurisdiction because the notice of appeal was prematurely filed. The court of appeals overruled the motion for summary dismissal. The Supreme Court dismissed the appeal for lack of jurisdiction, holding that Graham’s notice of appeal was prematurely filed and, therefore, was without effect. View "Clarke v. First National Bank of Omaha" on Justia Law

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Jerry Morgan purchased property by obtaining a loan secured by a deed of trust. Morgan conveyed the property to his company, Midland Properties, LLC, and managed the property as a rental. Wells Fargo, N.A., which had been assigned the lender’s interest in the promissory note and deed of trust, initiated a nonjudicial foreclosure on the deed of trust, citing Morgan’s failure to make payments as they became due. HBI, LLC purchased the property at a trustee’s sale and conveyed the property to H&S Partnership, LLP. Morgan and Midland Properties (collectively, Appellants) filed an amended complaint against Wells Fargo, HBI, and H&S alleging wrongful foreclosure of a deed of trust, quiet title, tortious interference with business relationships, and declaratory relief. The district court granted summary judgment for Wells Fargo. The Supreme Court affirmed, holding (1) the district court properly excluded evidence for lack of foundation and hearsay; (2) the evidence did not support Appellants’ claims or establish a genuine issue of material fact; and (3) the district court did not abuse its discretion in denying Appellants’ motion for leave to amend their complaint. View "Midland Properties, LLC v. Wells Fargo, N.A." on Justia Law

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Homeowners obtained loans from Bank for the construction of a new home and entered into an agreement with Contractor to complete the new home construction. When Homeowners defaulted on payments owed to Contractor and on both loans, the house was sold at foreclosure, and Homeowners filed for bankruptcy. Contractor filed a fourth amended complaint against Homeowners, who were later dismissed as parties, and Bank. Following a trial the court granted summary judgment for Bank on Contractor’s claims of fraud and civil conspiracy. The Supreme Court reversed. After remand, Contractor filed a fifth amended complaint, which differed from the fourth amended complaint in several respects. The district court determined that the election of remedies doctrine and judicial estoppel required a dismissal of Contractor’s claims. The Supreme Court reversed, holding (1) Contractor’s claims were consistently premised on the existence of a contract, and therefore, no election was required; and (2) Contractor’s claims were based on different facts and obligations, and therefore, both could be pursued. View "deNourie & Yost Homes, LLC v. Frost" on Justia Law

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A Bank filed an action against four Guarantors on their personal guaranties of an LLC’s debts. That action resulted in three appeals by the Guarantors. The first appeal was generated after the district court granted the Bank’s motions for summary judgment but failed to adjudicate a cross-claim. The second appeal was taken from execution and garnishment proceedings that occurred while the first appeal was pending. The third appeal was taken after one Guarantor moved to vacate the summary judgment order and the district court denied the motion and dismissed the pending cross-claim. The Supreme Court vacated the final orders in the second appeal and affirmed the judgment in the third appeal, holding (1) the execution and garnishment proceedings were void because they were commenced prior to judgment; and (2) the district court correctly overruled the Guarantor’s motion to vacate the summary judgment order. View "Cattle Nat’l Bank & Trust Co. v. Watson" on Justia Law

Posted in: Banking
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The Lindsays were minority shareholders of the 304 Corporation; its principal asset was Mid City Bank. In 2010, the Nebraska Department of Banking and Finance and the FDIC began an examination of the bank. In 2011, the Department appointed the FDIC as the bank's receiver, stating that “‘large commercial real estate loan and poor management practices . . . led to a deterioration of the bank’s capital’” so that there was “‘no option but to declare the insolvent institution receivership.’” The bank reopened and regained good standing. In 2014, the FDIC filed suit, alleging that Fitl “was grossly negligent and breached his fiduciary duties,” 12 U.S.C. 1821(d)(2)(A)(i). The Lindsays also filed suit, alleging breach of fiduciary duties. The court dismissed. The Nebraska Supreme Court affirmed. The Lindsays’ claims are similar to all other shareholders’ claims and did not arise from a special duty, since the injury was not “separate and distinct.” The district court correctly concluded that the Lindsays’ claims were derivative in nature and that as a result of the FDIC lawsuit, the Lindsays had no standing to bring a derivative action on behalf of the corporation. View "Lindsay v. Fitl" on Justia Law

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U.S. Bank was a senior lien holder on certain property, and First Nebraska Educators Credit Union’s interest was junior to U.S. Bank’s. After a foreclosure sale, First Nebraska filed suit, alleging that because it did not receive notice of the sale, it was not able to bid on the property, and its second lien interest was extinguished with the sale of the property. The district court granted U.S. Bank’s motion to dismiss for failure to state a claim, concluding that First Nebraska was not entitled to notice. At issue on appeal was whether U.S. Bank was required to mail a notice of sale to First Nebraska under Neb. Rev. Stat. 76-1008. The Supreme Court affirmed, holding that U.S. Bank was not required to serve notice of foreclosure sale upon First Nebraska. View "First Neb. Educators Credit Union v. U.S. Bancorp" on Justia Law