Stabler v. First State Bank of Roscoe

In 2007, four members of the Stabler family - Stan and Rose Stabler, their child, Brad, and Brad’s wife Brenda - brought fraud actions against the First State Bank of Roscoe (FSB) and its president, John Beyers, alleging that FSB and Beyers conspired to induce the Stablers to sign notes and mortgages to pay debt that had been discharged due to bankruptcy. The circuit court rescinded one note and mortgage as to Brad and Brenda and allowed another note with a third-party bank to be enforced against them. After a trial, a jury found that FSB and Beyers fraudulently induced Stan and Rose to sign a promissory note and collateral real estate mortgage. Both sides appealed the circuit court’s judgment with respect to multiple transactions that they engaged in over the years. The Supreme Court reversed in part, holding that the trial court erred in (1) setting aside the $20,000 punitive damage award to Stan and Rose; and (2) ruling that a prior mortgagee that no longer holds any interest in a collateral real estate mortgage may file an addendum for the current mortgagee, and therefore, one collateral real estate mortgage lapsed for failure of the mortgagee, Beyers, to file an addendum. View "Stabler v. First State Bank of Roscoe" on Justia Law