Plaintiff bank filed action for common law fraud and conspiracy to defraud, alleging that Defendant borrower made misrepresentations in a loan underwriting process. Plaintiff entered into a 5th loan modification with Defendant, who was a guarantor, in exchange for additional collateral Defendant said was unencumbered. After bench trial, court found that Defendant had misrepresented status of the collateral but found that Plaintiff failed to prove it was justified in relying on that misrepresentation or had suffered any damages as a result. Plaintiff should not have simply relied on Defendant's representations and could have done an investigation which would ot have been onerous. Conspiracy is not an independent tort; the conspiracy to defraud claim fails because Plaintiff failed to prove fraud. (CUNNINGHAM and CONNORS, concurring.)
Illinois Appellate Court
Civil Court
Breach of Contract