Lender out-of Whitewater v. Decker Assets, Inc

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Lender out-of Whitewater v. Decker Assets, Inc

DECKER Assets, INC., mais aussi al., Defendants-Appellees, and you may AVCO Economic Functions Out-of TOPEKA, INC., and Couples Monetary Functions Providers Regarding Ohio, INC., Defendants-Appellants, and you can Lender Regarding Middle-America, Plaintiff-Appellee, vPASS Improvements, INC., et al., Defendants-Appellees.

The lending company Out of WHITEWATER, Plaintiff-Appellee, v

Charles S. Fisher, Jr., regarding Fisher, Hell and you may Wright, P.A great., regarding Topeka, debated the cause and you can is into brief to own appellants AVCO Economic Qualities from Topeka, Inc. and you can Partners Monetary Properties Business away from Ohio, Inc.

Richard V. Foote, regarding Matlack & Foote, P.A beneficial., regarding Wichita, argued the main cause and you can is actually on temporary getting appellee Financial away from Whitewater.

Jack Focht, off Focht, Hughey & Hund, out-of Wichita, debated the source and you can is toward short term to have appellee Karl Umbach.

Orlin L. Wagner, out of Wichita, debated the https://cashlandloans.net/installment-loans-nd/ source and you may Richard A. Macias and you may Wilbur D. Geeding, each of Wichita, was basically that have him on the brief to possess appellees Celebrity Lumber & Likewise have Co., Inc.; Good.B. Masonry Structure, Inc.; and you can James C. Meadows and you can Roger D. Meadows d/b/a great J & J Companies.

This is home financing property foreclosure step where a few actions was basically consolidated one registered by appellee Bank regarding Whitewater, and one recorded because of the Bank of Middle-The usa.

Just after thorough development, Associates Financial Functions out-of Kansas, Inc. (Associates); Avco Economic Properties of Topeka, Inc. (AVCO); and you may Financial out-of Middle-The usa revised their ways to raise the issue of fraud since the a safeguards for the previous filed mortgage loans of the Lender out of Whitewater. Scott Stuber and you may Stephen An excellent. Decker.

Multiple mechanics’ lien claimants and additionally said a first lien to your some of your characteristics getting foreclosed up on. The validity of them liens plus the schedules upon which they connected was in fact things bifurcated regarding the head trial and you will calculated during the an early mode.

The newest trial court located the mortgages held by the Bank out of Whitewater into the property at issue is ahead of the states of Associates, AVCO and the Financial from Mid-America. The courtroom failed to find one scam or wrongdoing to the a portion of the Financial regarding Whitewater or the vice-chairman, Karl Umbach.

AVCO and Partners attract into the numerous issues. Mostly, they say the newest trial judge erred when you look at the neglecting to hold its mortgages first and earlier liens senior to any or all other hobbies and you can for the failing to come across *310 you to Karl Umbach therefore the Lender of Whitewater enough time scam on this new appellants.

Let us very first pick the fresh new activities and their matchmaking. AVCO and you can Couples is actually economic financing institutions provided from the County out-of Ohio with workplaces based in Wichita, Kansas.

The lending company regarding Whitewater are a financial firm structured within the laws and regulations of one’s County out-of Ohio featuring its dominant host to organization within the Whitewater, Kansas. John Umbach try this new president and doing work head of your Lender from Whitewater. Their partner, Marilyn Umbach, served because a receptionist of one’s financial as well as their guy, Karl Umbach, offered as the bank’s manager vice-president. Ninety-eight percent of your own bank’s inventory try owned by brand new Umbach family relations.

The financial institution from Whitewater is actually working around a consent Arrangement provided into August 28, 1975, because of the Government Deposit Insurance Agency relative to unsound banking methods, including: excessive financing away from the loan territory; ineffective margin from safety towards the guarantee funds; disappointing overall performance out of a debtor; weak financial position; guarantee with questionable liquidation worth; loan intensity of borrowing; and you will incorrect oversight of finance.

And additionally asking one its mortgage loans getting adjudged prior, they prayed getting actual and you can punitive damage against the Lender out-of Whitewater, Karl Umbach, J

J. Scott Stuber and you may Stephen Good. Decker (hereinafter Stuber and you may Decker) were citizens away from Sedgwick County, Kansas. Mr. Decker try the brand new president of Decker Expenditures, Inc.; ents, Inc. Mr. Stuber try a bona-fide house designer. Stuber and you may Decker first started doing business together with her in the latter part away from 1978, coping mostly inside the a property investment. Stuber and you can Decker had been partners in the deals employed in this lawsuit. The relationship manage about label from Stephen Decker managed to eliminate judgment financial institutions out-of Stuber.

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