M.S v. Inc. v. Bank of Boston-Western Massachusetts, N.A. (In Re Martin Specialty Vehicles, Inc.)

OPINION

JAMES F. QUEENAN, Jr., Bankruptcy Judge.

This is a complaint by a corporation and its principal stockholder alleging a wrongful foreclosure by the corporation’s lender, Bank of Boston — Western Massachusetts, N.A. (the “Bank”), which caused the termination of its business. The case was tried under three theories outlined in the plaintiffs’ opening: that the corporation’s loans were not in default; that the Bank had no security interest in the assets; and that the Bank acted in bad faith. The Court holds that the Bank had an enforceable security interest, but awards damages for wrongful…