DECKER Opportunities, INC., ainsi que al., Defendants-Appellees, and you can AVCO Financial Properties Regarding TOPEKA, INC., and you can Lovers Monetary Qualities Organization Away from Ohio, INC., Defendants-Appellants, and you will Financial Out-of Middle-The usa, Plaintiff-Appellee, vPASS Developments, INC., et al., Defendants-Appellees.
The lending company Away from WHITEWATER, Plaintiff-Appellee, v
Charles S. Fisher, Jr., regarding Fisher, Hell and you will Wright, P.A great., of Topeka, contended the cause and you will is actually towards the short-term to have appellants AVCO Monetary Services regarding Topeka, Inc. and you may Couples Economic Functions Team out-of Kansas, Inc.
Richard V. Foote, from Matlack & Foote, P.A beneficial., out-of Wichita, argued the reason and you may is on the brief to have appellee Lender out-of Whitewater.
Jack Focht, out of Focht, Hughey & Hund, off Wichita, debated the main cause and you can are for the temporary to own appellee Karl Umbach.
Orlin L. Wagner, of Wichita, argued the cause and you may Richard An excellent. Macias and you can Wilbur D. Geeding, all of Wichita, were which have your towards the temporary for appellees Star Timber & Likewise have Co., Inc.; A great.B. Masonry Structure, Inc.; and you will James C. Meadows and you can Roger D. Meadows d/b/a good J & J Companies.
This is home financing property foreclosure step where one or two actions was consolidated one to submitted from the appellee Financial off Whitewater, and another recorded by Financial of Mid-America.
Immediately after comprehensive development, Lovers Monetary Services away from Ohio, Inc. (Associates); Avco Monetary Attributes off Topeka, Inc. (AVCO); and you will Lender away from Mid-The usa revised its remedies for raise the problem of scam because a defense to the previous registered mortgage loans of the Lender from Whitewater. Scott Stuber and you can Stephen A beneficial. Decker.
Multiple mechanics’ lien claimants also advertised a first lien towards particular of characteristics are foreclosed on. New validity of them liens plus the times upon which they attached was basically facts bifurcated on the fundamental demo and calculated from the a young form.
The latest trial courtroom receive this new mortgages stored from the Lender out of Whitewater to the possessions in question are before the states off Associates, AVCO together with Financial from Mid-The usa. The fresh new courtroom failed to select one con otherwise wrongdoing for the part of the Lender out of Whitewater otherwise its vice-president, Karl Umbach.
AVCO and you will Partners attract toward numerous activities. Primarily, they say new demo courtroom erred into the failing woefully to keep their mortgages basic and you will previous liens older to all the most other interests and you will during the failing continually to pick *310 you to Karl Umbach in addition to Lender out-of Whitewater the full time swindle abreast of the fresh appellants.
Let us first select the fresh events as well as their relationship. AVCO and you may Partners are economic credit associations provided throughout the County off Kansas with practices based in Wichita, Kansas.
The lending company away from Whitewater is a banking company organized beneath the legislation of the County away from Kansas featuring its dominating host to company into the Whitewater, Kansas. John Umbach try the newest chairman and you may working direct of your own Bank out of Whitewater. Their spouse, Marilyn Umbach, served because a secretary of your lender in addition to their guy, Karl Umbach, served as the bank’s administrator vice-president. Ninety-eight percent of bank’s stock are owned by the new Umbach family relations.
The lending company out of Whitewater try performing below a permission Contract granted toward August twenty eight, 1975, because of the Government Deposit Insurance rates Enterprise in accordance with unsound banking techniques, including: excessive credit outside of the financing region; ineffective margin out-of cover towards security fund; discouraging overall performance off a debtor; weakened financial position; equity that have suspicious liquidation really worth; financing intensity of online installment loans Mississippi borrowing from the bank; and you will improper oversight of loans.
Also asking you to their mortgage loans getting adjudged earlier in the day, they prayed to have genuine and you may punitive injuries against the Bank out-of Whitewater, Karl Umbach, J
J. Scott Stuber and you can Stephen A good. Decker (hereinafter Stuber and you may Decker) was citizens away from Sedgwick County, Ohio. Mr. Decker is the fresh new chairman regarding Decker Expenditures, Inc.; ents, Inc. Mr. Stuber is actually a genuine property designer. Stuber and you will Decker first started conducting business together on the latter part out-of 1978, dealing mainly inside the a property investment. Stuber and you can Decker was lovers regarding the purchases involved in so it suit. The relationship work about name out-of Stephen Decker managed to stop wisdom loan providers away from Stuber.