Badgett v. Security State Bank

Raymond and Audrey Badgett appeal summary judgments dismissing their action for damages against Security State Bank, awarding the Bank judgment on its loan to them, and permitting foreclosure on their property. We find that the evidence presented raises material issues of fact concerning the Bank's duty to the Badgetts and so remand the case for trial.

The Badgetts' relationship with Security State began in 1980, when they transferred their business from Rainier Bank and borrowed $476,000 from Security State to pay off loans at Rainier and to provide for operating expenses. The contracts for…