Barrer v. Women's National Bank

Facing a tax sale of his home, Barrer (plaintiff) sought a redemption loan from Women's National Bank (WNB) (defendant), whose president Womack had a personal, sympathetic relationship with him; Barrer disclosed general financial trouble but disputed or downplayed several specific facts, including the extent of his mortgage delinquency, a pending foreclosure, an IRS liability, a debt in his late wife's name, and outstanding judgments against him. WNB approved the loan without running a credit check or contacting Barrer's mortgage bank, then rescinded it after the tax-sale buyer disclosed the fuller picture of Barrer's finances. A magistrate granted WNB summary judgment, finding Barrer failed to disclose five specific facts and that those facts were material.