RAYMOND J. ULRICH and MILDRED E. ULRICH, Plaintiffs-Appellants, v. FEDERAL LAND BANK OF ST. PAUL and FEDERAL LAND BANK ASSOCIATION OF BAD AXE-CARO, MICHIGAN, Defendants-Appellees., 192 Mich. App. 194

Summary

Plaintiffs, borrowers, secured a note from defendant, lender, by granting a mortgage on their farm. The borrowers ceased making payments on the note. The lender foreclosed. The borrowers sued the lender alleging that the foreclosure of their farm was invalid; the borrowers also pleaded theories of breach of fiduciary duty, breach of an implied covenant of good faith and fair dealing, breach of contract, and negligence. Summary disposition was granted to the lender on all claims. The borrowers appealed. The court affirmed. The court held that the borrowers failed to state a claim for breach of fiduciary duty. Summary disposition was also proper with respect to plaintiffs' claims that the lender breached an implied covenant of good faith and fair dealing because Michigan did not recognize an independent tort action for such a breach. Further, the borrowers also failed to state a claim for breach of contract. Finally, the borrowers failed to state a claim of negligence. Furthermore, the ...