DECKER Assets, INC., mais aussi al., Defendants-Appellees, and you can AVCO Financial Functions Away from TOPEKA, INC., and you may Associates Financial Attributes Business Off Kansas, INC., Defendants-Appellants, and you will Lender Out-of Mid-America, Plaintiff-Appellee, vPASS Developments, INC., et al., Defendants-Appellees.
The lending company From WHITEWATER, Plaintiff-Appellee, v
Charles S. Fisher, Jr., regarding Fisher, Heck and you will Wright, P.An effective., away from Topeka, debated the cause and you can try for the short term having appellants AVCO Financial Services regarding Topeka, Inc. and Partners Economic Properties Providers of Kansas, Inc.
Richard V. Foote, out-of Matlack & Foote, P.Good., of Wichita, argued the source and you may try on the brief having appellee Bank out of Whitewater.
Jack Focht, off Focht, Hughey & Hund, out-of Wichita, contended the reason and you can are into the short-term for appellee Karl Umbach.
Orlin L. Wagner, from Wichita, argued the cause and you can Richard A good. Macias and you can Wilbur D. Geeding, each of Wichita, was in fact having him toward short term to have appellees Superstar Material & Also provide Co., Inc.; A great.B. Masonry Build, Inc.; and you may James C. Meadows and you may Roger D. Meadows d/b/a great J & J Companies.
This will be home financing foreclosure action which a few methods was consolidated you to submitted from the appellee Lender off Whitewater, and another submitted by Financial off Mid-The united states.
Immediately following thorough breakthrough, Lovers Economic Characteristics regarding Ohio, Inc. (Associates); Avco Monetary Qualities out-of Topeka, Inc. (AVCO); and you will Bank out-of Mid-The united states amended their solutions to raise the dilemma of fraud once the a defense to your early in the day registered mortgages of Lender from Whitewater. Scott Stuber and Stephen Good. Decker.
Numerous mechanics’ lien claimants in addition to said an initial lien into certain of the characteristics getting foreclosed on. The fresh new authenticity of those liens plus the schedules where they connected was factors bifurcated about main demonstration and you may computed at the an early on means.
This new demo courtroom discovered brand new mortgage loans stored from the Financial out-of Whitewater towards assets involved become prior to the says of Couples, AVCO plus the Lender out of Middle-America. The judge did not get a hold of one swindle otherwise wrongdoing with the area of the Bank off Whitewater otherwise their vice-president, Karl Umbach.
AVCO and Lovers interest towards the multiple situations. Mainly, they say the new trial courtroom erred within the neglecting to keep the mortgage loans earliest and earlier liens elder to all or any almost every other passions and you can within the failing woefully to come across *310 you to definitely Karl Umbach together with Bank out of Whitewater committed swindle upon this new appellants.
Let us first choose brand new activities as well as their matchmaking. AVCO and you may Couples is actually financial financing establishments integrated throughout the Condition regarding Kansas that have workplaces situated in Wichita, Kansas.
The bank out-of Whitewater is actually a banking enterprise organized according to the regulations of your own State off Ohio using its dominating place of team within the Whitewater, Ohio. John Umbach are the newest chairman and performing lead of Lender out of Whitewater. Their spouse, Marilyn Umbach, supported once the a secretary of your own lender and their son, Karl Umbach, offered since bank’s executive vice-chairman. Ninety-8% of one’s bank’s inventory was owned by brand new Umbach relatives.
The lending company of Whitewater is functioning not as much as a permission Contract given to the August twenty-eight, 1975, by the Government Deposit Insurance Firm prior to unreliable banking techniques, including: excess lending outside its mortgage territory; ineffective margin of defense to your equity fund; unsatisfactory performance off a borrower; weak financial position; collateral which have questionable liquidation value; loan concentration of credit; and you can poor supervision from loans.
Plus inquiring one to its mortgage loans be adjudged early in the day, they prayed for actual and you may punitive damages up against the Financial out-of Whitewater, Karl Umbach, J
J. Scott Stuber and Stephen A. Decker (hereinafter Stuber and you can Decker) was citizens out of Sedgwick County, Kansas. Mr. Decker is new chairman out-of Decker Investments, Inc.; ents, Inc. Mr. Stuber was a real property creator. Stuber and you will Decker began working with her throughout the second part of 1978, coping primarily from inside the a residential property investment. Stuber and Decker was partners on purchases doing work in which lawsuit. The partnership operated regarding title of http://www.cashlandloans.net/installment-loans-co Stephen Decker in order to stop judgment financial institutions out of Stuber.