Woodford v. Capital Bank, NA (In re Woodford), Case No. 18-71300; A.P. No. 19-07003 5/1/2019

The Debtor filed an adversary proceeding against Capital Bank alleging the Bank violated the Equal Credit Opportunity Act when it required her then husband to execute a deed of trust on their principal residence.  The Debtor, as president of a company, executed a Note and commercial guaranty for the benefit of the Bank.  Without making any inquiry as to the Debtor’s individual creditworthiness, the Debtor alleges the Bank violated the anti-discrimination provisions of the Act by requiring her husband to execute the deed of trust as collateral securing the loan for which she applied on behalf of her company.  The Court held that the deed of trust at issue was not a "credit instrument" within the scope of the regulations implementing the Act and dismissed the complaint for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6).

Date: 
Wednesday, May 1, 2019
Category: 
Adversary Proceedings
Rule 12(b)(6)
Chapter: 
13