Opinion ID: 498009
Heading Depth: 2
Heading Rank: 3

Heading: Ballenger's Alleged Misrepresentations

Text: 24 The Bank further contends that Ballenger had a legal duty to accurately portray T & B's credit worthiness and to disclose T & B's subsequent financial failings. Ballenger contends that it did not intentionally nor negligently misrepresent facts to the Bank. The bankruptcy court found no intentional misrepresentation on Ballenger's part. As for negligent misrepresentation, Ballenger contends that the Bank was fully aware at all times that T & B was in financial difficulty, and that the Bank was in as good a position as Ballenger to obtain information concerning T & B. 25 The bankruptcy court determined that the Bank's allegations of intentional and negligent misrepresentation by Ballenger are both legally and factually unsubstantiated. Legally, the court found no basis upon which Ballenger might owe a duty to the Bank; factually, it found that the Bank's assertions are not borne out by the record. 26 The bankruptcy court's legal conclusions are subject to complete review by this court. See Monson v. First National Bank of Bradenton, 497 F.2d 135 (5th Cir.1974). Whether Ballenger owes any duty to the Bank is a question of law. Examining this question independently, we conclude, as did the bankruptcy court, that, on these facts, no specific duty was breached by Ballenger such that the Bank may hold Ballenger liable for its losses. 27 As stated above, this court must accept factual findings by the bankruptcy court unless they are clearly erroneous. In re Greenbrook Carpet Co., Inc., 722 F.2d 659 (11th Cir.1984). The bankruptcy court determined that the record does not support the Bank's allegations of misrepresentation. We note that the bankruptcy court found a lack of diligence on the part of the Bank in monitoring T & B's financial condition. The Bank has not presented any argument on appeal which adequately refutes this finding, and renders it clearly erroneous. We therefore accept the bankruptcy court's determination and affirm the district court on this issue.