Lee v. United Federal Savings & Loan Ass'n

In Lee v. United Federal Savings & Loan Ass'n, 466 So. 2d 131 (Ala. 1985), the Court dealt with the issue whether a lending institution could be held liable for fraud that might have occurred in a transaction in which it was merely providing financing. The Court held: "The mere lending of money on a house by a financial institution, albeit one with knowledge of deficiencies in the house, does not create a confidential relationship, or other circumstances imposing a duty to disclose information at the lender's disposal." (466 So. 2d at 134.)