Wayne Jett v. Jeffrey S. Sunderman Sunrise Enterprise Corporation National Union Fire Insurance Company of Pittsburgh and Union Planters Bank

Wayne Jett appeals the district court’s grant of summary judgment in favor of defendants-appellees Union Planters Bank (“Union Bank”) and National Union Fire Insurance Company (“National Union”) in an action alleging state and federal securities law violations, RICO violations, common law fraud and conversion, all arising from Jett’s investment in a limited partnership which went into bankruptcy. We affirm in part and reverse in part.

FACTS AND PROCEEDINGS BELOW

In December 1983, Jett purchased an interest in a limited partnership (“Partnership”) by making a cash down-payment of $11,000 and executing an interest bearing promissory note (“Note”) for $90,000 payable to the limited partnership in five annual installments. The offering memorandum stated that the Partnership intended to use the investors’ notes as security for a loan, and that National Union had orally committed to issue a surety bond as additional collateral to secure payment of the loan. Issuance of the bond was conditioned upon the limited partners executing an indemnification and pledge agreement in favor of National Union. Accordingly, Jett executed the required agreement (“Indemnification Agreement”)…