Unpublished Dispositionin Re Edgewater Motel, Inc., Debtor.blaine-hays Construction Co., Plaintiff-appellee, v. Union Planters National Bank, Defendant-appellant, 876 F.2d 103 (6th Cir. 1989)

This action arises out of the Chapter 11 bankruptcy of Edgewater Motel, Inc., an entity organized to build a motel in Gatlinburg, Tennessee. Plaintiff Blaine-Hays Construction Company was involved in the construction project as the general contractor. Defendant Union Planters National Bank was the project's principal lender. After failing to receive all of the funds it was due under its contract with the debtor, Blaine-Hays instituted an adversary proceeding against the bank, alleging negligent misrepresentation among other things. The bankruptcy court entered judgment for the plaintiff on the negligent misrepresentation claim, and the district court affirmed the bankruptcy court's judgment. On appeal to this court the bank argues that the statements forming the basis for the negligent misrepresentation claim were true, that there was no justifiable reliance on the representations, and that the representations were not the proximate cause of the plaintiff's losses.

After careful review of the record, we conclude that these issues were properly resolved by the bankruptcy court. We therefore AFFIRM the judgment for the reasons stated in the comprehensive opinions of the bankruptcy court and the district court.