Ronald C. Teachout v. Conseco Securities, Inc.A/K/A Conseco Financial Services, Inc., Conseco Finance Servicing Corp., Conseco Bank, Inc. and Lisa M. Bynum

This is an arbitration case. The plaintiff borrower executed a note in favor of the defendant bank. The note included an arbitration clause, requiring all disputes between the "Borrower(s)" and "Note Holder" to be arbitrated. The term "Note Holder" is defined in the note as the "Lender or anyone who takes [the] Note by transfer and who is entitled to receive payments under [the] Note." The bank transferred the note and the borrower began making payments to a third party. The borrower then filed this lawsuit against the bank and others, alleging fraud in the inducement, negligent misrepresentation, promissory fraud, and violation of the Consumer Protection Act. The defendants filed a motion to stay the proceedings and to compel arbitration. The trial court denied the motion. We affirm, holding that under the note, the bank is no longer a "Note Holder" and therefore does not have standing to invoke the arbitration clause.