Eicher v. Mid America Financial Investment Corporation

Nos. S-03-1257, S-03-1184 (Neb. Sup. Ct. filed Aug. 22, 2005) ; Clearinghouse Number: 55954

Description

Home Owners Prove Consumer Fraud and Civil Conspiracy Against Lenders Who Misrepresented Home Conveyances as Home Loans

Abstract

The [INSERT COMPLETE COURT NAME] Court held that plaintiff owners who were fraudulently induced to sign home conveyances were entitled to recover damages, including attorney fees, for civil conspiracy claims and state consumer protection law violations. Plaintiffs filed against Mid America and its owners an action alleging that owners, acting through Mid America as their alter ego, conducted a fraudulent scheme whereby they identified people whose homes were in foreclosure, approached them under the guise of loaning them money to stop the foreclosure, and then deceitfully acquired title to their homes by acquiring warranty deeds. Plaintiffs alleged fraud, civil conspiracy, unjust enrichment, and violations of the state consumer protection law and deceptive trade practices law. Defendants contended that the terms of the transaction were fully explained to each plaintiff and that plaintiffs understood that they were conveying title to the home to defendants. The trial court found that defendants had engaged in a civil conspiracy to commit fraud and had fraudulently induced plaintiffs to enter into transactions of conveyance falsely represented as loans in violation of the state consumer protection act; the trial court awarded plaintiffs $374,224 in attorney fees . Affirming the trial court, the [INSERT COMPLETE COURT NAME] court reasoned that, because plaintiffs were fraudulently induced to sign what was misrepresented as loan documents, the general rule binding a party to a signed contract did not apply. The basis of plaintiffs’ action was that they were induced to sign contract documents based upon the assertions that the documents were loans when in fact they were conveyances.

Additional Information

Attorney Information
Appellees represented by Andee Scioli, Fraser Stryker Law Firm, 409 S. 17th St., 500 Energy Plaza, Omaha, NE 68102 (402.341.6000); Danielle Nantkes, Nebraska Appleseed Center, 941 O St., Suite 105, Lincoln, NE 68508 (402.438.8853).
Docket Date
2005-08-22 00:00:00+00:00
Attorney Email
ascioli@fraserstryker.com, dnantkes@neappleseed.org