Article Archives >> Lead Stories >> November 1-30, 2011
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Mortgage Broker Not Liable
When Co-Pastor Misuses Funds
Bankruptcy Court recognizes breach of duty,
but says conduct was not a substantial factor in harm
A mortgage broker who helped a church procure three mortgage loans that were signed by a co-pastor but never authorized by the pastor or the board has been found not liable to the church for funds apparently diverted by the co-pastor for other uses. A bankruptcy court in California has held that even though the broker breached a duty to the church, its conduct was not a “substantial factor” in the harm. (In re: Church of God in Christ #2 v. BDM Mortgage Services, Bankruptcy Ct., N.D. CA, Bankruptcy No. 08-30750, 10/20/11.)
Article Archives >> Lead Stories >> November 1-30, 2011
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