Bich v. WW3 LLC

Plaintiffs made a series of loans to a company constructing an oil-processing facility. The debtors allegedly assured the lenders that their investment would be “secured” and “backed” by real and personal property. When the project did not succeed, the lenders did not receive their money back and sued the debtors for breach of contract. The district court granted summary judgment in favor of the defendants and plaintiffs appealed. The Seventh Circuit affirmed, explaining that under Wisconsin law any time property serves as security for a loan the parties must satisfy the statute of frauds and where, as here, there was no written evidence meeting that requirement the loan agreement was unenforceable. (KOLAR and MOLDONADO, concurring)