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Tuesday, March 01, 2016

Ind. Decisions - 7th Circuit decides one Indiana case today, finds appeal frivolous and grants sanctions

In Christopher White v. George Keely (SD Ind., Pratt), a 13-page opinion, District Judge Pallmeyer (ND Ill.), sitting by designation, writes:

Plaintiffs-appellants Christo-pher White and his company Reffco II, L.P. (collectively “White”) 1 filed suit against several current and former officers of the National Bank of Indianapolis (“NBI Employees”) pursuant to the Federal Reserve Act, 12 U.S.C. § 503. That statute establishes civil liability for bank officers and direc-tors who violate certain substantive provisions of the Federal Reserve Act and the False Entry Statute. White’s complaint alleges that the NBI Employees violated the False Entry Statute, 18 U.S.C. § 1005, by falsifying official bank reports in order to cover up unauthorized transfers made from White’s business accounts at the National Bank of Indianapolis (“NBI”). White claims these § 1005 violations caused him to suffer harm and that the NBI Employees are liable to him pursuant to 12 U.S.C. § 503. The district court dismissed White’s complaint for failure to allege that he relied on the false statements, and White timely appeals that decision. The NBI Employees contend the appeal is frivolous and have asked for an award of sanctions pursuant to Federal Rule of Appellate Procedure 38. Because White has not pleaded that he was harmed as a consequence of the alleged § 1005 violations, we affirm the district court’s dismissal of White’s complaint. We further agree with defendants-appellees that White’s appeal is frivolous, and therefore grant their motion for sanctions. * * *

Based on our review of the complaint and the legal histo-ry of this case, which has embroiled NBI in costly litigation with White for seven years, we find that White’s appeal is frivolous and sanctionable under Rule 38.

Posted by Marcia Oddi on March 1, 2016 01:22 PM
Posted to Ind. (7th Cir.) Decisions