DECKER Opportunities, INC., et al., Defendants-Appellees, and you can AVCO Economic Properties Out-of TOPEKA, INC., and you will Lovers Monetary Properties Team From Ohio, INC., Defendants-Appellants, and you may Financial Out of Middle-America, Plaintiff-Appellee, vPASS Improvements, INC., et al., Defendants-Appellees.
The bank Of WHITEWATER, Plaintiff-Appellee, v
Charles S. Fisher, Jr., of Fisher, Hell and you will Wright, P.An excellent., out of Topeka, debated the reason and you will try on brief for appellants AVCO Economic Qualities out-of Topeka, Inc. and you will Lovers Economic Qualities Team from Ohio, Inc.
Richard V. Foote, regarding Matlack & Foote, P.A good., off Wichita, debated the source and you can was to the brief for appellee Financial regarding Whitewater.
Jack Focht, regarding Focht, Hughey & Hund, off Wichita, contended the main cause and try towards the short term to possess appellee Karl Umbach.
Orlin L. Wagner, regarding Wichita, contended the cause and you can Richard A good. Macias and you can Wilbur D. Geeding, both of Wichita, was basically which have him towards the temporary to possess appellees Celebrity Wood & Have Co., Inc.; A great.B. Masonry Build, Inc.; and you can James C. Meadows and you will Roger D. Meadows d/b/an excellent J & J People.
This is certainly a mortgage foreclosures action where a couple methods have been consolidated you to definitely registered from the appellee Lender out-of Whitewater, plus one registered of the Financial from Middle-The united states.
Once extensive advancement, Associates Economic Properties from Kansas, Inc. (Associates); Avco Economic Attributes out-of Topeka, Inc. (AVCO); and you can Bank out-of Middle-America revised its approaches to raise the dilemma of swindle because the a shelter toward early in the day recorded mortgages of your Lender out of Whitewater. Scott Stuber and Stephen Good. Decker.
Numerous mechanics’ lien claimants along with reported a first lien to the specific of one’s qualities are foreclosed upon. This new validity of these liens while the schedules where they attached was in fact factors bifurcated regarding head trial and you may computed within a young mode.
The trial courtroom receive the new mortgage loans kept by Financial off Whitewater into the property under consideration becoming before the claims of Lovers, AVCO and Bank regarding Mid-The united states. The new courtroom did not find one fraud or wrongdoing towards the main Financial from Whitewater or the vice-chairman, Karl Umbach.
AVCO and you can Couples attract into the multiple activities. Mainly, they do say the brand new trial courtroom erred for the failing continually to keep its mortgages very first and you will prior liens elder to all most other welfare and you will from inside the failing to look for *310 you to Karl Umbach and also the Lender away from Whitewater enough time scam abreast of the fresh appellants.
Let us earliest identify the latest events and their relationship. AVCO and you can Associates are monetary financing institutions included about Condition regarding Kansas which have practices situated in Wichita, Ohio.
The lending company off Whitewater is a banking corporation prepared within the regulations of your Condition off Kansas featuring its principal host to team when you look at the Whitewater, Ohio. John Umbach was the brand new chairman and you may working head of your own Financial from Whitewater. His partner, Marilyn Umbach, offered as a receptionist of the lender and their man, Karl Umbach, offered while the bank’s administrator vice-chairman. Ninety-8% of your bank’s inventory try belonging to the newest Umbach family unit members installment loans New Hampshire.
The financial institution out-of Whitewater is functioning under a permission Contract awarded into August 28, 1975, from the Federal Deposit Insurance coverage Firm in accordance with unsound financial practices, which included: an excessive amount of financing beyond its financing region; useless margin off cover to the guarantee money; discouraging efficiency out of a borrower; poor budget; security that have questionable liquidation worthy of; mortgage concentration of borrowing; and improper oversight out of loans.
Along with inquiring you to definitely the mortgages getting adjudged past, they prayed getting actual and you can punitive damages contrary to the Lender out-of Whitewater, Karl Umbach, J
J. Scott Stuber and Stephen An effective. Decker (hereinafter Stuber and Decker) was citizens of Sedgwick Condition, Ohio. Mr. Decker try the fresh president out-of Decker Expenditures, Inc.; ents, Inc. Mr. Stuber is actually a bona-fide home developer. Stuber and you will Decker began working together from the second area of 1978, coping generally in the a residential property investments. Stuber and Decker have been people on transactions working in that it suit. The partnership work throughout the label off Stephen Decker manageable to stop wisdom creditors of Stuber.
