Jackson v. Bank of America

In November 1979, plaintiff filed his complaint for money due against defendant bank. He alleged therein that he had signed a promissory note to the bank as a guarantor for another. Plaintiff had placed with the bank as security certain City of Detroit Improvement Bonds having a principal value of $50,000.

Plaintiffs complaint charged fraud in the bank’s failure to inform plaintiff that the principal borrower had increased an original loan from $23,000 to almost $40,000, and had defaulted in payments on that loan. Plaintiff sought judgment releasing him from liability as the guarantor of the note. In September 1980, the bank notified plaintiff that the bonds held by the bank on plaintiff s note would be sold unless additional security was deposited. On October 14, 1980, after notice to counsel for the bank, plaintiff obtained an order to show cause and temporary restraining order restraining the bank from selling, transferring, or otherwise disposing of plaintiffs bonds. Contemporaneously with the restraining order, plaintiff filed his first amended complaint. Plaintiff therein sought judgment to include rescission of plaintiffs promissory note, restitution of all funds…