Reid v. Key Bank of Southern Maine
United States Court of Appeals for the First Circuit
821 F.2d 9 (1987)
Facts
Paul Reid and Depositors Trust Company of Southern Maine (bank), the predecessor in interest of Key Bank of Southern Maine, Inc. (defendant), had a long-standing and mutually profitable debtor-creditor relationship. All of the loan instruments generated by this relationship specified certain conditions that would entitle the bank to demand immediate repayment. Reid relied on his credit line to finance and expand his painting business. In March 1979, the bank raised Reid’s credit limit. Reid borrowed against his extended credit line to finance a new project. Two months later, the bank cut off Reid’s credit line without explanation. The bank later claimed it gave Reid prior notice of its decision, but Reid claimed he did not discover his loss of credit until September 1979. Reid’s business collapsed when he ran out of money, triggering a host of disastrous consequences. Reid sued the bank on 17 counts. The federal district-court jury ruled for the bank on all but Reid’s charge that the bank violated the implied covenant of good faith and fair dealing. Both parties appealed to the First Circuit.
Rule of Law
Issue
Holding and Reasoning (Bownes, J.)
What to do next…
Here's why 707,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 44,500 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.
