Court Opinion

ID: 9666302
Source: CourtListenerOpinion
Date Created: 2023-08-24 01:10:42.052558+00
Date Added: 2024-06-11T18:15:26.425059
License: Public Domain

WUEST, Acting Justice
(dissenting).
I dissent.
The trial court found the bank received material benefits by issuing the letter to Western. By keeping Diedrich and Norman in business longer, the bank was able to collect more money on its loan to them. In addition, the bank earned interest on their deposits. This court reviews a trial court’s findings of fact under the “clearly erroneous” standard and overturns a trial court’s conclusions of law only when it has erred as a matter of law. Wefel v. Harold J. Westin & Associates, Inc., 329 N.W.2d 624 (S.D.1983); Hartpence v. Youth Forestry Camp, 325 N.W.2d 292 (S.D.1982).
In my opinion, the bank was not performing an act of charity when this letter was written. They wanted to keep the parties in business so they could collect an apparent shaky loan. The trial court was not “clearly erroneous” nor was it wrong in applying estoppel. It was highly unequita-ble for the bank to repudiate the transaction and it should be held liable. See 10 Am.Jur.2d Banks § 300 (1963). As a matter of plain honesty, the bank should be held liable.
I am authorized to state that Chief Justice FOSHEIM joins in this dissent.