First Bank & Trust Company (“FBT”), a lender to Tom Gibson, has filed suit in Hamilton County Ohio against 5th Third Bank (“5/3”), the primary lender to Eastern Livestock.
The lawsuit claims that 5/3 recklessly (or perhaps knowingly) allowed Eastern to kite checks for some time, and that the Bank’s motivation to do this was based on the fees it earned from the banking relationship. Among other things, FBT identifies approximately $450,000 in deposits to 5/3 of cattle sales proceeds that FBT claims were subject to FBT’s lien because they represented sales of Tom Gibson’s cattle by Eastern. The lawsuit also claims that when it ceased advancing funds to Eastern, 5/3 know that Eastern’s checks to cattle sellers would bounce, but that proceeds from cattle buyers would continue to come into 5/3 reducing its loan balance. There are many other allegations (see the attachment). The Bank’s time to respond to the complaint has not yet expired.
The lawsuit claims that 5/3 recklessly (or perhaps knowingly) allowed Eastern to kite checks for some time, and that the Bank’s motivation to do this was based on the fees it earned from the banking relationship. Among other things, FBT identifies approximately $450,000 in deposits to 5/3 of cattle sales proceeds that FBT claims were subject to FBT’s lien because they represented sales of Tom Gibson’s cattle by Eastern. The lawsuit also claims that when it ceased advancing funds to Eastern, 5/3 know that Eastern’s checks to cattle sellers would bounce, but that proceeds from cattle buyers would continue to come into 5/3 reducing its loan balance. There are many other allegations (see the attachment). The Bank’s time to respond to the complaint has not yet expired.
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