The bank sued the defendants for default on a commercial loan, a home equity line of credit, and various credit cards.
The defendants counterclaimed for $8.8 million, alleging the bank's failure to fully advance a $350,000 small business loan caused the failure of their restaurant businesses.
The court found that while the bank breached the loan agreement, the breach was not the effective cause of the business failures.
The business failures were caused by a prior fire, massive existing debts, and a failed expansion restaurant that rendered a $500,000 internal loan uncollectible.
The court dismissed the counterclaim, preferred the bank's expert valuation, found no deceit or bad faith by the bank, and granted judgment to the bank for the outstanding loan amounts.
