DECKER Investment, INC., mais aussi al., Defendants-Appellees, and you will AVCO Economic Services Out of TOPEKA West Virginia installment loans nocredit check, INC., and you can Lovers Economic Characteristics Company Of Ohio, INC., Defendants-Appellants, and you may Bank Out of Middle-The united states, Plaintiff-Appellee, vPASS Advancements, INC., et al., Defendants-Appellees.
The financial institution Away from WHITEWATER, Plaintiff-Appellee, v
Charles S. Fisher, Jr., of Fisher, Hell and you can Wright, P.An effective., of Topeka, contended the cause and you can try into temporary to own appellants AVCO Monetary Features out-of Topeka, Inc. and you can Associates Financial Functions Team regarding Ohio, Inc.
Richard V. Foote, out-of Matlack & Foote, P.A great., out of Wichita, contended the main cause and try to the temporary for appellee Financial from Whitewater.
Jack Focht, out-of Focht, Hughey & Hund, out-of Wichita, contended the main cause and you may try for the temporary to have appellee Karl Umbach.
Orlin L. Wagner, of Wichita, argued the main cause and Richard A beneficial. Macias and you can Wilbur D. Geeding, all of Wichita, had been which have him into short term for appellees Superstar Material & Have Co., Inc.; A good.B. Masonry Build, Inc.; and you will James C. Meadows and you will Roger D. Meadows d/b/a J & J Companies.
That is home financing foreclosures step in which one or two measures was basically consolidated one registered from the appellee Bank of Whitewater, and one registered from the Lender off Middle-The usa.
After comprehensive discovery, Associates Monetary Services of Kansas, Inc. (Associates); Avco Economic Attributes regarding Topeka, Inc. (AVCO); and Lender from Middle-America amended the solutions to enhance the problem of con since the a security to the earlier filed mortgage loans of your Lender from Whitewater. Scott Stuber and Stephen A beneficial. Decker.
Several mechanics’ lien claimants along with claimed an initial lien on particular of your own functions being foreclosed up on. The new validity ones liens while the dates upon which they attached was in fact facts bifurcated from the fundamental demonstration and computed at a young mode.
The trial court discover brand new mortgage loans kept of the Financial away from Whitewater into the property under consideration to be ahead of the states from Lovers, AVCO as well as the Lender regarding Mid-The united states. The brand new judge did not pick any swindle or wrongdoing with the part of the Financial of Whitewater or their vice-chairman, Karl Umbach.
AVCO and you may Associates attract into the several factors. Primarily, they state the fresh demo courtroom erred in the failing woefully to hold their mortgages first and you will prior liens senior to all the almost every other passion and you will from inside the failing continually to pick *310 one Karl Umbach as well as the Lender out-of Whitewater committed fraud through to the latest appellants.
Why don’t we very first select the fresh activities and their relationship. AVCO and you can Lovers is actually economic lending organizations included on County from Kansas that have offices situated in Wichita, Ohio.
The lending company of Whitewater try a financial organization structured in laws and regulations of the Condition out of Ohio featuring its dominant host to company during the Whitewater, Ohio. John Umbach try this new president and you can operating direct of Financial of Whitewater. Their partner, Marilyn Umbach, supported because a receptionist of your own lender as well as their kid, Karl Umbach, supported because the bank’s government vice-chairman. Ninety-eight percent of your bank’s inventory was belonging to this new Umbach members of the family.
The bank out-of Whitewater is operating less than a consent Agreement provided towards August twenty eight, 1975, of the Government Put Insurance rates Agency relative to unreliable banking techniques, which included: excessive lending beyond its mortgage area; useless margin from shelter to your guarantee money; unsatisfying overall performance regarding a debtor; poor financial position; security that have dubious liquidation worth; mortgage intensity of borrowing from the bank; and you will incorrect supervision of money.
Also inquiring one its mortgages getting adjudged early in the day, they prayed to have actual and punitive damages from the Bank off Whitewater, Karl Umbach, J
J. Scott Stuber and you will Stephen A. Decker (hereinafter Stuber and you will Decker) were residents regarding Sedgwick Condition, Kansas. Mr. Decker is brand new president off Decker Expenditures, Inc.; ents, Inc. Mr. Stuber try a bona fide home designer. Stuber and you may Decker began doing business along with her on latter region from 1978, coping mostly inside the real estate assets. Stuber and you will Decker was in fact couples throughout the purchases employed in it suit. The connection manage regarding term off Stephen Decker in check to stop wisdom creditors of Stuber.