Damages For Breach Of Loan Agreement

On the advice of the bank employee, Scott borrowed $100,000 instead of the $5,000 originally claimed, which was secured by his mother`s house. He then opened a business account with Invest and invested approximately $52,000 of the loan proceeds. The account was eventually wiped out in the 1987 stock market crash, and Evelyn Scott then fell behind in her mortgage. The Scotts sued the bank and Invest for breach of trust obligation and negligence. The Scotts settled their claims against the bank before the lawsuit, but the lawsuit against the bank continued. When it came time to sign the loan documents, the applicants found that the documents contained new provisions that they had not accepted and that the document only structured the mortgage for one year. The PCA credit administrator assured them that these provisions are just formalities and that they don`t have to worry. On the basis of the official`s assurances, the applicants signed the documents . . .