DALLAIRE v. BANK OF AMERICA, N.A.

No. 51PA13.

760 S.E.2d 263 (2014)

Jacques A. DALLAIRE and wife, Fernande Dallaire v. BANK OF AMERICA, N.A.; HomeFocus Services, LLC; and LandSafe Services, LLC.

Supreme Court of North Carolina.

June 12, 2014.


Attorney(s) appearing for the Case

Ferguson, Scarbrough, Hayes, Hawkins & DeMay, P.A., Concord, by John F. Scarbrough and James E. Scarbrough , for plaintiff-appellees.

McGuireWoods, LLP, Charlotte, by Robert A. Muckenfuss , for defendant-appellant Bank of America, N.A.

J.L. Pottenger, Jr. for Jerome N. Frank Legal Services Organization Mortgage Foreclosure Clinic, amicus curiae.

Poyner Spruill LLP, Raleigh, by Edwin M. Speas, Jr. , Andrew H. Erteschik , and Lynn C. Percival IV , for North Carolina Bankers Association, amicus curiae.

Laura E. Collins for University of North Carolina School of Law Consumer Financial Transactions Clinic, amicus curiae.


NEWBY, Justice.

In this case we consider whether a loan officer's statements about lien priority in a home mortgage transaction support a borrower's claims for breach of fiduciary duty and negligent misrepresentation against the lender. Generally, the home loan process is regarded as an arm's length transaction between parties of equal bargaining power and, absent exceptional circumstances, will not give rise to a fiduciary duty. Because a loan officer's initial discussion...

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