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Posts published in “Banking”

Illinois App. Court (2nd Dist) Holds Successive Actions on Same Guaranty Not Barred by Res Judicata

The Appellate Court of Illinois, Second District, recently rejected the arguments of two loan guarantors that a bank’s current claims against them were barred by res judicata because the current claims arose out of the same guaranty that the bank used to sue them in…

SCOTUS Denies Cert in 2nd Cir. Case Holding Debt Collector Could Not Charge Usurious Fees, Interest Allowed for Bank Originator

As you may recall from our prior updates, the U.S. Court of Appeals for the Second Circuit recently reversed a district court’s ruling that federal National Bank Act preemption applicable to the loan originator allowed a non-bank consumer debt buyer to charge interest in excess…

8th Cir. Holds Cybertheft Covered by Financial Institution Bond Applying ‘Concurrent Causation’ Doctrine

The U.S. Court of Appeals for the Eighth Circuit recently held that a bank was entitled to recover its cybertheft losses under its financial institution bond, despite its employee’s violation of the bank’s internal policies and procedures, and despite the bank’s failure to update its…

5th Cir. Holds Compliance With Calif. Probate Code Makes Bank Immune from Wrongful Disbursement Claim

The U.S. Court of Appeals for the Fifth Circuit recently held that, although a bank had actual notice of an heir’s claim to her decedent father’s account funds, the bank’s compliance with the post-death affidavit provisions of California Probate § 13106(a) rendered the bank immune…

7th Cir. Rejects Breach of Contract Allegations by Borrowers of Failed Bank Against Purchaser Bank

The U.S. Court of Appeals for the Seventh Circuit recently affirmed the dismissal of a breach of contract claim brought by a group of investors against a bank that purchased the assets of a failed bank in receivership, because there was no writing memorializing the…

11th Cir. Holds Florida Statute Prohibiting Fees to Pay by Credit Card Unconstitutional

The U.S. Court of Appeals for the Eleventh Circuit recently struck down Florida’s “anti-surcharge” statute, Fla. Stat. § 501.0117, holding that the Florida law prohibiting charging a fee to pay by credit card was an unconstitutional restriction of free speech. A copy of the opinion…