Davis v. Nevada National Bank

OPINION

In April, 1970, appellants and one Paul Bennett (the “Contractor”) entered into an agreement with respondent (the “Bank”) whereby the Bank agreed to loan appellants funds for the construction of a home in Las Vegas.

During the course of construction, appellants noted serious defects in the foundation of the home. Appellants asked the Bank’s loan officer to withhold payments until the problems were corrected; the Bank refused, apparently without any investigation of the truth of appellant’s assertions.

Although appellants eventually obtained a judgment against the Contractor for his…