Court Opinion

ID: 9847705
Source: CourtListenerOpinion
Date Created: 2023-09-24 04:05:36.532369+00
Date Added: 2024-06-11T09:17:28.228676
License: Public Domain

TAYLOR, Chief Justice, with whom SMITH, Justice, concurs
(concurring specially) .
I concur in the opinion by Justice ANDERSON, except insofar as it may be possible to glean therefrom an inference that there is evidence in the record of false representations made by the bank officials. Not only does the evidence fail to show damage, it fails to show any false representations were made. As stated in my dissent to the first opinion, Cooper v. Wesco Builders, Inc., 73 Idaho 383, 253 P.2d 226, the only representations which might be considered as such were with reference to the Twin Falls and Idaho Falls projects. Now the proof is in, it appears the Idaho Falls project was in fact prosecuted by the Wesco Builders and the profits therefrom were accounted for and paid into the defendant bank as agreed. The Twin Falls project, not having been commenced as early as that at Idaho Falls, was carried on under the name of Northwestern Construction Company, because of the financial difficulties of the Wesco Builders. However, its profits were likewise accounted for and paid into the defendant bank as agreed.
At the creditors’ meetings in September, 1949, and January, 1950, all of the surrounding facts were freely and fully discussed by the plaintiffs, the bank officials, and the officers of the Wesco Builders. No concealment or falsehood is made to-appear. On the contrary, it appears that the plaintiffs were fully advised of all pertinent facts and acted upon their own judgment as to the best course for them to pursue. They were advised that $8,000' in pay-roll tax due the government, and $3,000 due numerous small creditors, would have to be paid in order to avoid legal proceedings which would prevent the completion and orderly marketing of the buildings on which they had expended materials and labor. Knowing these facts, they accepted the bank’s offer to advance the $11,000, urgently needed to continue the project and to allow the structures to be completed and marketed, in return for their agreement not to file liens. In addition they received title to duplexes, their share in the distribution of available cash, and other benefits, all of which would appear to be greater than they would have received had the government exercised its first lien for taxes, and had the creditors engaged in a mad scramble for what was left, in pursuing their lien rights.
In the light of these facts the statements by the bank’s representatives, that they thought there would be enough profit from the Idaho Falls and Twin Falls projects to pay the creditors, were not fraudulent.