DECKER Opportunities, INC., et al., Defendants-Appellees, and you will AVCO Economic Characteristics Out-of TOPEKA, INC., and you will Couples Financial Characteristics Providers Out-of Ohio, INC., Defendants-Appellants, and you may Financial Off Middle-The usa, Plaintiff-Appellee, vPASS Improvements, INC., et al., Defendants-Appellees.
The lending company Out-of WHITEWATER, Plaintiff-Appellee, v
Charles S. Fisher, Jr., out of Fisher, Heck and you will Wright, P.An effective., from Topeka, contended the cause and you will is actually towards short term to own appellants AVCO Financial Functions regarding Topeka, Inc. and Associates Economic Attributes Team of Kansas, Inc.
Richard V. Foote, away from Matlack & Foote, P.Good., off Wichita, contended paydays loans in New York with installment payments the cause and you will try towards the brief to have appellee Bank away from Whitewater.
Jack Focht, out-of Focht, Hughey & Hund, out-of Wichita, argued the source and you may was toward short term to have appellee Karl Umbach.
Orlin L. Wagner, away from Wichita, contended the source and you may Richard A. Macias and Wilbur D. Geeding, each of Wichita, have been which have your into temporary to own appellees Star Lumber & Also have Co., Inc.; An effective.B. Masonry Framework, Inc.; and you may James C. Meadows and you can Roger D. Meadows d/b/an excellent J & J Enterprises.
This can be a home loan property foreclosure step for which one or two methods was in fact consolidated that recorded by appellee Lender out-of Whitewater, and something recorded of the Lender of Middle-The united states.
Just after thorough finding, Couples Economic Qualities off Kansas, Inc. (Associates); Avco Monetary Services out of Topeka, Inc. (AVCO); and you may Financial off Middle-The united states revised its answers to increase the issue of con just like the a safeguards into earlier filed mortgages of one’s Financial regarding Whitewater. Scott Stuber and you will Stephen A great. Decker.
Numerous mechanics’ lien claimants in addition to reported a primary lien to the some of features being foreclosed upon. The fresh new validity of them liens therefore the dates upon which it attached was items bifurcated about fundamental trial and you may computed in the an earlier form.
The fresh demonstration legal receive new mortgage loans held because of the Bank of Whitewater into property at issue to get prior to the claims away from Couples, AVCO while the Lender regarding Mid-America. New courtroom didn’t discover people con or wrongdoing on the an element of the Lender from Whitewater otherwise the vice-chairman, Karl Umbach.
AVCO and Partners focus toward numerous items. Generally, they claim the new trial court erred inside failing continually to keep the mortgage loans first and previous liens elder to any or all most other passion and you will when you look at the failing woefully to select *310 you to definitely Karl Umbach in addition to Financial out of Whitewater the time swindle upon the latest appellants.
Let us first pick the activities and their dating. AVCO and you will Partners is actually monetary credit associations incorporated in the Condition away from Ohio which have workplaces situated in Wichita, Ohio.
The financial institution out-of Whitewater is actually a banking firm structured under the statutes of Condition out of Kansas using its dominating place of providers during the Whitewater, Ohio. John Umbach is this new chairman and you can doing work direct of your Financial regarding Whitewater. His partner, Marilyn Umbach, supported since a secretary of your own bank as well as their guy, Karl Umbach, offered due to the fact bank’s manager vice-chairman. Ninety-eight percent of your bank’s stock is actually owned by brand new Umbach family members.
The bank out-of Whitewater is actually working lower than a permission Agreement provided to the August twenty-eight, 1975, from the Federal Put Insurance rates Organization in accordance with unsound financial means, which included: too-much financing outside their financing area; useless margin of safety toward collateral fund; disappointing show out of a borrower; poor budget; security which have dubious liquidation well worth; financing intensity of borrowing; and you may improper supervision off loans.
And asking one the mortgages be adjudged previous, they prayed to have actual and you will punitive problems against the Bank off Whitewater, Karl Umbach, J
J. Scott Stuber and you will Stephen A beneficial. Decker (hereinafter Stuber and you may Decker) was in fact citizens regarding Sedgwick Condition, Kansas. Mr. Decker try the fresh new president off Decker Expenditures, Inc.; ents, Inc. Mr. Stuber is actually a genuine property creator. Stuber and Decker began conducting business together regarding latter area out-of 1978, coping primarily for the real estate investments. Stuber and Decker was basically lovers from the deals employed in it suit. The connection run on label out of Stephen Decker in order to eliminate view financial institutions of Stuber.