Assoc of Banks v. Duryee

Court of Appeals for the Sixth Circuit·Decided November 1, 2001·No. 99-3917·Published

Opinion

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH 

(/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS

81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB

$662&,$7,21 2) %$1.6 ,1 ; ,1685$1&( ,1& $0(5,&$1  %$1.(56 $662&,$7,21   1R ,1685$1&( $662&,$7,21  2+,2 %$1.(56 $662&,$7,21 !  +817,1*721 1$7,21$/  %$1.  3ODLQWLIIV$SSHOOHHV   Y    +$52/' 7 '85<((  6XSHULQWHQGHQWRI2KLR  'HSDUWPHQWRI,QVXUDQFH  'HIHQGDQW    ,1'(3(1'(17 ,1685$1&(  $*(176 2) 2+,2 ,1& 2+,2  $662&,$7,21 2) /,)(  81'(5:5,7(56 2+,2  $662&,$7,21 2)  352)(66,21$/ ,1685$1&(   $*(176 ,1& 2+,2 /$1'  7,7/( $662&,$7,21  ,1'(3(1'(17 ,1685$1&(  $*(176 2) $0(5,&$ ,1&  

  $VVjQRI%DQNVLQ,QV,QF 1R HWDOY'XU\HHHWDO

1$7,21$/ $662&,$7,21 2)  /,)( 81'(5:5,7(56  1$7,21$/ $662&,$7,21 2)   352)(66,21$/ ,1685$1&(  $*(176 ,1&  ,QWHUYHQRUV  'HIHQGDQWV$SSHOODQWV  1

$SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH6RXWKHUQ'LVWULFWRI2KLRDW&ROXPEXV 1RnsDPHV/*UDKDP'LVWULFWsXGJH $UJXHG$XJXVW 'HFLGHGDQG)LOHG1RYHPEHU %HIRUH68+5+(,15,&+DQG'$8*+75(<&LUFXLW sXGJHV&2//,(5'LVWULFWsXGJH BBBBBBBBBBBBBBBBB &2816(/ $5*8('6FRWW$6LQGHU&2//,(56+$11215,// 6&277:DVKLQJWRQ'&IRU$SSHOODQWV.DWKOHHQ0 7UDIIRUG 3257(5 :5,*+7 0255,6  $57+85 &ROXPEXV 2KLR IRU $SSHOOHHV  21 %5,()  6FRWW $ 6LQGHUsRKQs0DQQLQJ&2//,(56+$11215,// 6&277 :DVKLQJWRQ '& IRU $SSHOODQWV  .DWKOHHQ 0 7UDIIRUG 3257(5 :5,*+7 0255,6  $57+85 &ROXPEXV2KLRIRU$SSHOOHH

7KH +RQRUDEOH &XUWLV / &ROOLHU 8QLWHG 6WDWHV 'LVWULFW sXGJH IRU WKH (DVWHUQ 'LVWULFW RI 7HQQHVVHH VLWWLQJ E\ GHVLJQDWLRQ 1R $VVjQRI%DQNVLQ,QV,QF  HWDOY'XU\HHHWDO

7+(&203752//(52)7+(&855(1&<:DVKLQJWRQ '&IRU$PLFXV&XULDH BBBBBBBBBBBBBBBBB 23,1,21 BBBBBBBBBBBBBBBBB 0$57+$&5$,*'$8*+75(<&LUFXLWsXGJH7KLV DFWLRQLQYROYHVWKHULJKWRIDQDWLRQDOEDQNXQGHU†RIWKH )HGHUDO5HVHUYH$FW86&†WRDFWDVDQLQVXUDQFH DJHQW LQ WRZQV ZLWK D SRSXODWLRQ RI  RU OHVV 7KH SODLQWLIIVDQDWLRQDOEDQNDQGVHYHUDORUJDQL]DWLRQVZKRVH PHPEHUVKLSV LQFOXGH QDWLRQDO EDQNV ILOHG VXLW DJDLQVW WKH 2KLR6XSHULQWHQGHQWRI,QVXUDQFHVHHNLQJ  DGHFODUDWRU\ MXGJPHQWWKDWFHUWDLQ2KLROLFHQVLQJSURYLVLRQVDVDSSOLHGWR QDWLRQDOEDQNVDUHSUHHPSWHGE\86&†DQG  D SHUPDQHQW LQMXQFWLRQ SUHYHQWLQJ HQIRUFHPHQW RI WKHVH SURYLVLRQVDJDLQVWQDWLRQDOEDQNVWRWKHH[WHQWWKDWWKH\DUH SUHHPSWHG  6SHFLILFDOO\ DW LVVXH LV WKH YLDELOLW\ RI 2KLRjV mSULQFLSDOSXUSRVHWHVWlDVZHOODVYDULRXVVWDWXWRU\OLFHQVLQJ UHTXLUHPHQWV  )DFHG ZLWK FURVVPRWLRQV IRU VXPPDU\ MXGJPHQW WKH GLVWULFW FRXUW JUDQWHG VXPPDU\ MXGJPHQW LQ IDYRU RI WKH SODLQWLIIV SURYLGLQJ WKHP ZLWK WKH UHTXHVWHG GHFODUDWRU\DQGLQMXQFWLYHUHOLHI 6XEVHTXHQW WR WKH ILOLQJ RI WKH DFWLRQ D QXPEHU RI LQVXUDQFHWUDGHRUJDQL]DWLRQVLQWHUYHQHGDVGHIHQGDQWV7KH\ QRZDSSHDOWKHGLVWULFWFRXUWjVGHFLVLRQ+RZHYHUEHFDXVH WKH VWDWH VXSHULQWHQGHQW RI LQVXUDQFH WKH RULJLQDO SDUW\ GHIHQGDQW KDV QRW DSSHDOHG DSSDUHQWO\ DFTXLHVFLQJ LQ WKH RUGHURIQRQHQIRUFHPHQWRIWKHVWDWHVWDWXWHVLQTXHVWLRQWKH SODLQWLIIVFKDOOHQJHWKHVWDQGLQJRIWKHLQWHUYHQRUVEHIRUHWKLV FRXUW)RUWKHUHDVRQVVHWRXWEHORZZHFRQFOXGHWKDWWKH LQWHUYHQRUVGRLQGHHGKDYHVWDQGLQJWREULQJWKLVDSSHDOEXW QHYHUWKHOHVVZHDIILUPWKHMXGJPHQWRIWKHGLVWULFWFRXUWRQ WKHPHULWV%HFDXVHRIOHJLVODWLRQHQDFWHGDIWHUMXGJPHQWZDV HQWHUHG KRZHYHU WKH FDVH PXVW EH UHPDQGHG IRU IXUWKHU SURFHHGLQJV  $VVjQRI%DQNVLQ,QV,QF 1R 1R $VVjQRI%DQNVLQ,QV,QF  HWDOY'XU\HHHWDO HWDOY'XU\HHHWDO

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j HFRQRPLF LQWHUHVWV ZKLFK WKH\ FODLPHG GHIHQGDQWV GR KDYH VWDQGLQJ WR DSSHDO  1HYHUWKHOHVV ZH ZRXOGEHWKUHDWHQHGLIQDWLRQDOEDQNVZHUHDOORZHGWRVHOO $)),50WKHGLVWULFWFRXUWjVJUDQWRIVXPPDU\MXGJPHQWWR LQVXUDQFH ZLWKRXW KDYLQJ WR FRPSO\ IXOO\ ZLWK 2KLRjV WKH SODLQWLIIV EDVHG RQ WKH FRXUWjV GHFLVLRQ WKDW WKH 2KLR LQVXUDQFHODZV LQVXUDQFHVWDWXWHVDWLVVXHLQWKLVFDVHDUHSUHHPSWHGE\ 86&†+RZHYHUZHIXUWKHUFRQFOXGHWKDWSDVVDJHRI 3ODLQWLIIVVXHGIRUGHFODUDWRU\DQGLQMXQFWLYHUHOLHIXQGHU WKH*UDPP/HDFK%OLOH\$FW3XE/1R   86&†DQG86&†7KH\VRXJKWDUXOLQJ PD\DIIHFWWKHMXGJPHQWEHORZDQG5(0$1'WKHFDVHIRU WKDW  86& †  SUHHPSWV FHUWDLQ 2KLR LQVXUDQFH WKHGLVWULFWFRXUWjVIXUWKHUFRQVLGHUDWLRQXQGHUWKHQHZ$FW

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

 7KH VWDWXWH SURYLGHV LQ UHOHYDQW SDUW

,Q DGGLWLRQ WR WKH SRZHUV QRZ YHVWHG E\ ODZ LQ WKH QDWLRQDO EDQNLQJ DVVRFLDWLRQV RUJDQL]HG XQGHU WKH ODZ RI WKH 8QLWHG  $VVjQRI%DQNVLQ,QV,QF 1R 1R $VVjQRI%DQNVLQ,QV,QF  HWDOY'XU\HHHWDO HWDOY'XU\HHHWDO

Free access — add to your briefcase to read the full text and ask questions with AI

Assoc of Banks v. Duryee, (6th Cir. 2001).

Assoc of Banks v. Duryee (Assoc of Banks v. Duryee) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.