Service Funding, Inc. v. Craft

Service Funding, Inc., (Service Funding) brought an action to recover $28,802.38 on a note secured by a second mortgage from the Crafts on property in which First Security Bank (First Security) also had a security interest. The District Court for the Eighteenth Judicial District, Gallatin County, sitting without a jury, denied Service Funding’s request for relief. We affirm.

The issues are:

1. Did First Security Bank have a fiduciary duty to Service Funding, and if so, was that duty breached?

2. Did the District Court err in failing to subordinate advances made to the Crafts by First Security…