First Bank v. Fischer & Frichtel, Inc.Annotate this Case
This case involved the question of how the amount of a deficiency owed by Fischer & Frichtel Inc, a commercial debtor, after a foreclosure sale of its property should be measured. The trial court submitted an instruction directing the jury to award the difference between the amount of the debt and the property's fair market value at the time of the foreclosure sale. The court then granted First Bank's motion for a new trial in light of its showing that Missouri case law instead requires the deficiency to be determined by the difference between the debt and the amount received at the foreclosure sale. The Supreme Court affirmed after discussing Missouri common law, which requires that the deficiency should be measured by the amount received at the foreclosure sale, but if the sale price is so inadequate as to raise an inference of fraud, then the foreclosure sale can be voided.