Sexton v. St. Clair Federal Savings Bank
Supreme Court of Alabama
653 So.2d 959 (1995)
The Sextons (plaintiffs) took out a construction loan from St. Clair Federal Savings Bank (defendant) under a contract requiring the bank to regularly monitor their builder's progress and disburse funds accordingly, but the bank abruptly halted disbursements after discovering the builder was rapidly depleting the loan without doing corresponding construction work, and later foreclosed when the Sextons couldn't continue construction or payments. The Sextons sued for mental-anguish damages arising from the bank's alleged breach of its monitoring obligations, and the trial court granted the bank summary judgment; the Sextons appealed.
Whether there are exceptions to the general rule that a plaintiff cannot recover damages for mental anguish arising from a breach of contract.