Financial Services Litigation

Defended Citizens Bank & Trust on claims that the Bank negligently released a certificate of title for plaintiffs’ mobile home to the co-maker of the purchase money loan for the mobile home who then forged plaintiffs’ signature on the title and obtained a new certificate of title in the forgers’ names.

Successfully defended claims for fraud, lender liability, and breach of contract; awarded summary judgment on all claims.

Plaintiff, a construction company, filed for Chapter 7 bankruptcy the day after filing an action in the Circuit Court of St. Clair County, Alabama for damages under the UCC arising from the theft, fraudulent endorsement and negotiation of $238,000 in company checks by its supervisor employee that were then deposited in his personal accounts at Metro Bank. We removed the state court action to Bankruptcy Court and after successfully avoiding the Bankruptcy Trustee’s attempt to remand the case to state court, the case settled for approximately 15% of the amount of the stolen and forged checks.

Defended third party defendant Auburn Bank and its officers against claims by third party plaintiff mortgagor homeowners that Auburn Bank, as their construction lender, failed to properly supervise their builder during construction of plaintiffs’ new residence.

Defended Metro Bank against claims by plaintiff mortgagor homeowners that Metro Bank, as construction lender, failed to properly supervise plaintiffs’ builder during the construction of their new residence. We obtained summary judgment on all claims following the close of discovery.

Plaintiff brought this action to set aside a deed that she claims was fraudulently procured by her children. Plaintiff sought damages from Exchange Bank on grounds that the bank and its officers were negligent and fraudulent in failing to investigate the true ownership of the property and also participated in a conspiracy to defraud plaintiff of her interest in the property. We obtained summary judgment for the Bank on all claims which also allowed it to preserve a significant mortgage on the subject property.

Defended SouthFirst Bank, formerly known as First Federal of the South, against claims of fraud and conspiracy. The plaintiff was a loan applicant who was originally denied a loan by the bank as a poor credit risk, who then borrowed funds from a private party in a transaction that was set up by one of the bank’s loan officers.

Court upheld Bank`s right to compel arbitration in this class action challenging overdraft fee practices.

Case of first impression in Alabama resolving that checks with missing endorsements fall within scope of UCC 4-406(f) statute of repose.