Jackson v. Bank of America Corp.

Federal 7th Circuit Court
Civil Court
Citation
Case Number: 
No. 12-3338
Decision Date: 
March 29, 2013
Federal District: 
S.D. Ind., Indianapolis Div.
Holding: 
Affirmed
Dist. Ct. did not err in dismissing plaintiffs’ action alleging that defendant-bank negligently evaluated their ability to repay $282,500 home mortgage loan, and that said loan contract was unconscionable. Plaintiffs could not state valid negligence claim where plaintiffs alleged nothing more than typical mortgagor-mortgagee relationship that was insufficient to give rise to any duty owed by defendant to plaintiffs. Moreover, plaintiffs could not establish that instant mortgage contract was unconscionable under Indiana law where: (1) plaintiffs used mortgage broker to obtain instant loan at 5.875 percent interest; (2) plaintiffs had complied with terms of loan for seven years; and (3) there was nothing in record to indicate that plaintiffs did not understand terms of loan or that instant mortgage process was irregular.