Concerning the these types of loans, the new Underwoods together with bought a couple of policies from borrowing life insurance coverage of First Franklin and you may Voyager

Decided: August 01, 1997

Debra Underwood appeals off an overview view inserted in favor of First Franklin Monetary Organization (“First Franklin”), Voyager Life insurance policies Team (“Voyager”), and Joe Seals, a member of staff out-of First Franklin. This example is moved to so it courtroom because of the ultimate legal, pursuant so you can § 12-2-7(6), Ala.Password 1975.

In the December 1992 plus in April 1993, Debra Underwood and her partner, Jesse Underwood, borrowed funds from Earliest Franklin. In case there is a demise, the credit coverage manage pay completely the debt owed so you can Basic Franklin.

Within the November 1993, new Underwoods recorded a volunteer petition having Chapter 13 bankruptcy shelter, checklist inside their petition specific costs, for instance the two money which have Very first Franklin. Jesse Underwood passed away in December 1994, as Underwoods were still in the personal bankruptcy. The brand new case of bankruptcy package is affirmed on the January 7, 1994.


Towards the January 13, 1995, Ms. Underwood submitted a declare which have First Franklin to your borrowing lifetime insurance coverage proceeds from the two Voyager procedures. For the January 26, 1995, Voyager issued a couple inspections to help you Earliest Franklin, expenses experts from the level of $1,808, is used with the Ms. Underwood’s fund with Very first Financial. Ms. Underwood found that both principles got repaid a sum much less than extent who would have fulfilled the woman financing harmony that have Very first Franklin. She telephoned Seals, a pal who was and additionally a worker off Earliest Franklin, to find out as to the reasons the financing insurance continues failed to shell out completely the woman loan obligations which have Very first Franklin. Seals advised Ms. Underwood that she had received most of the continues she was entitled to discovered because the she and her partner had submitted to possess bankruptcy during the November 1993. Seals subsequent threatened so you’re able to repossess the girl vehicles, once the borrowing from the bank life insurance coverage had not fully paid down the newest fund.

Towards the February 22, 1995, Ms. Underwood registered a software for a difficulty bankruptcy proceeding discharge, according to the girl husband’s passing. Their software is actually provided because of the bankruptcy judge into the April 17, 1995. The brand new bankruptcy proceeding trustee is released on 22, 1995, together with Section 13 continuing was closed.

Into the January dos, 1996, Ms. Underwood filed this action facing Basic Franklin, Voyager, and you can Seals, saying states alleging swindle, violation away from offer, and bad trust, every relating to the experts reduced by Voyager around this lady insurance coverage policies. Basic Franklin, Voyager, and you can Seals went to own an overview judgment, my hyperlink arguing your “philosophy off official estoppel” blocked Ms. Underwood off looking for the lady states. The brand new demo legal offered this new motion and you will inserted a judgment when you look at the choose of your defendants.

A movement to have realization view is generally granted if there is zero genuine dilemma of procedure truth therefore the swinging class are entitled to a wisdom because a question of law. Hinkle v. Burgreen Hiring Co., 678 Very.2d 797 (Ala.Civ.Application.1996). If for example the moving people makes a prima facie demonstrating you to zero genuine problem of procedure fact is present and this try named so you can a judgment once the a point of law, the duty changes on the nonmovant commit forward that have proof carrying out a bona fide dilemma of material fact. Id. So you can overcome an adequately served conclusion view actions, new nonmovant need to introduce nice proof carrying out a bona-fide issue of thing reality. Id.

A borrower when you look at the a bankruptcy need to disclose one legal actions likely to appear in an effective nonbankruptcy framework. Luna v. Rule Bank regarding Middle Tennessee, Inc., 631 So.2d 917 (Ala.1993). Brand new philosophy from official estoppel pertains to prevent a celebration out of if in case the right position in a legal proceeding contradictory which have the right position in past times asserted. Id. Therefore, the philosophy suppresses a borrower who failed to disclose a state into the a bankruptcy proceeding off asserting the brand new claim during the a good nonbankruptcy function.