Barrett v. Bank of America

Opinion

WIENER, J.

Plaintiffs Ronald and Carole Barrett appeal from the judgment entered on a special verdict in favor of defendant Bank of America. We conclude the court prejudicially erred in failing to instruct the jury on constructive fraud and reverse the judgment.

Factual and Procedural Background

Ronald and Carole Barrett (Barretts) were principal shareholders in Pride Electronics, Inc. (Pride). Pride obtained a $253,000 Small Business Administration (SBA) loan and a $400,000 accounts receivable line of credit with Bank of America (Bank). In connection with these loans, the Barretts…