ILNews

Judges find wired payment timely

Back to TopCommentsE-mailPrintBookmark and Share

Judges on the Indiana Court of Appeals declined to expand upon language in a forbearance agreement between a bank and business owner, finding the business owner timely made his final payment to the bank when he wired the money the day it was due, even though the bank did not receive it until the next day.

Fifth Third Bank, which made loans to Rick Singleton and companies affiliated with him, sought to foreclose on mortgages held by the Singleton parties. The bank and Singleton entered into a forbearance agreement, which stated Singleton would “make payments toward the outstanding Indebtedness owing to Lender under their respective Obgligations” by dates set forth in a schedule in the agreement.  The final payment of $350,000 had a due date of June 30, 2011.

A dispute between the parties as to when the bank must receive the funds led to a judge determining that the dates in the agreement, based on the language of it, means that a payment must be made by that date, not that the bank must receive the payment by that date.

On June 30, 2011, Singleton and his attorney were contacted by Michael Watkins of Fifth Third Bank to remind them that the final payment was due that day. Singleton’s attorney, Randall Arndt, asked Watkins how the money should be paid. Watkins directed Arndt to make a wire transfer as was done in the past. Singleton wired the money June 30, and Fifth Third received it the next day.

The bank then sought to renew its motion for entry of agreed final judgment, arguing the payment was untimely. Singleton filed a cross-motion to enforce the forbearance agreement. The judge ruled in favor of the bank, finding that Singleton had control of when and where to make the final payment, and chose a method that could delay payment.

In Rick Singleton, et al. v. Fifth Third Bank, 71A04-1202-MF-83, the Court of Appeals reversed based on the language of the forbearance agreement. The agreement doesn’t expressly provide for a particular method of payment, nor does it spell out when the money would be deemed paid if used by a funds-transfer system.

“[T]he parties’ intent is determined from the four corners of the document,” Judge Elaine Brown wrote. “We are not at liberty to supply omitted terms while professing to construe a contract.”

Singleton’s action of issuing an order to wire the funds for the final payment on June 30, 2011, constituted making payment under the agreement and did not constitute a termination event under the forbearance agreement, the judges ruled. They ordered further proceedings on the matter.

 

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. My husband left me and the kids for 2 years, i did everything humanly possible to get him back i prayed i even fasted nothing worked out. i was so diver-stated, i was left with nothing no money to pay for kids up keep. my life was tearing apart. i head that he was trying to get married to another lady in Italy, i look for urgent help then i found Dr.Mack in the internet by accident, i was skeptical because i don’t really believe he can bring husband back because its too long we have contacted each other, we only comment on each other status on Facebook and when ever he come online he has never talks anything about coming back to me, i really had to give Dr.Mack a chance to help me out, luckily for me he was God sent and has made everything like a dream to me, Dr.Mack told me that everything will be fine, i called him and he assured me that my Husband will return, i was having so many doubt but now i am happy,i can’t believe it my husband broke up with his Italian lady and he is now back to me and he can’t even stay a minute without me, all he said to me was that he want me back, i am really happy and i cried so much because it was unbelievable, i am really happy and my entire family are happy for me but they never know whats the secret behind this…i want you all divorce lady or single mother, unhappy relationship to please contact this man for help and everything will be fine i really guarantee you….if you want to contact him you can reach him through dr.mac@yahoo. com..,

  2. As one of the many consumers affected by this breach, I found my bank data had been lifted and used to buy over $200 of various merchandise in New York. I did a pretty good job of tracing the purchases to stores around a college campus just from the info on my bank statement. Hm. Mr. Hill, I would like my $200 back! It doesn't belong to the state, in my opinion. Give it back to the consumers affected. I had to freeze my credit and take out data protection, order a new debit card and wait until it arrived. I deserve something for my trouble!

  3. Don't we have bigger issues to concern ourselves with?

  4. Anyone who takes the time to study disciplinary and bar admission cases in Indiana ... much of which is, as a matter of course and by intent, off the record, would have a very difficult time drawing lines that did not take into account things which are not supposed to matter, such as affiliations, associations, associates and the like. Justice Hoosier style is a far departure than what issues in most other parts of North America. (More like Central America, in fact.) See, e.g., http://www.theindianalawyer.com/indiana-attorney-illegally-practicing-in-florida-suspended-for-18-months/PARAMS/article/42200 When while the Indiana court system end the cruel practice of killing prophets of due process and those advocating for blind justice?

  5. Wouldn't this call for an investigation of Government corruption? Chief Justice Loretta Rush, wrote that the case warranted the high court’s review because the method the Indiana Court of Appeals used to reach its decision was “a significant departure from the law.” Specifically, David wrote that the appellate panel ruled after reweighing of the evidence, which is NOT permissible at the appellate level. **But yet, they look the other way while an innocent child was taken by a loving mother who did nothing wrong"

ADVERTISEMENT