PHENIX FED. SAV. & LOAN v. SHEARSON LOEB RHOADES

Nos. 86-1407 to 86-1409.

856 F.2d 1125 (1988)

PHENIX FEDERAL SAVINGS & LOAN ASSOCIATION, F.A., Appellant, v. SHEARSON LOEB RHOADES, INC., k/n/a Shearson/American Express, Inc., Appellee. HANSEN-FRIEDRICHSEN, INC.; Dallas County Alcohol; Jerry Hansen; Yvonne Hansen; Haupert Livestock, Inc.; and Donald E. and Eloise Haupert, Appellants, v. SHEARSON LOEB RHOADES, INC., k/n/a Shearson/American Express, Inc., Appellee. SHEARSON LOEB RHOADES, INC., k/n/a Shearson/American Express, Inc., Appellant, v. PHENIX FEDERAL SAVINGS & LOAN ASSOCIATION, F.A.; Hansen-Friedrichsen, Inc.; Dallas County Alcohol; Jerry Hansen; Yvonne Hansen; Haupert Livestock, Inc.; and Donald E. and Eloise Haupert, Appellees.

United States Court of Appeals, Eighth Circuit.

Decided September 9, 1988.


Attorney(s) appearing for the Case

Robert T. Haar, St. Louis Mo., for appellant.

Stephen Greiner, New York City, for appellee.

Before McMILLIAN, ARNOLD and BOWMAN, Circuit Judges.


ARNOLD, Circuit Judge.

This case developed from a complex series of financing deals for three ethanol plants in Iowa. The trial was bifurcated, the liability phase being tried first. The jury found that Shearson Loeb Rhoades, Inc., negligently misrepresented to the owners of the plants, Leonard Conrad, Jerry Hansen, and Donald E. and Eloise Haupert, and their related companies, that it would secure permanent financing of the plants by underwriting industrial development...

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