Bancorpsouth Bank v. Justin Herter & Capitol Management, Inc.

MEMORANDUM OPINION

J. DANIEL BREEN, District Judge.

INTRODUCTION

This action, filed in June 2004, arises from a series of defaulted mortgage loans made by the Plaintiff, BancorpSouth Bank (sometimes referred to herein as “BancorpSouth” or the “Bank”) to certain family members of the individual Defendant, Justin Herter. The Plaintiff has alleged that these family members, who have been dismissed as Defendants in this case, were “straw borrowers” for Herter and Defendant Capitol Management, Inc. (“CM”) and that Herter and CM should be held jointly and severally liable for the defaulted loans. The…