Bank officer receiving and using confidential info

1) Would it be legal for an officer at our bank to receive information regarding a pending lawsuit and a possible judgment from the plaintiff’s attorney before the case even reaches a courtroom and it hasn’t even been decided that our business even owes the money in question?and….2) For that banking officer to use that information to deny us a business loan they had already approved?

Asked on May 28, 2009 under Business Law, Tennessee


B. B., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

There is a lot more information that would be needed, to analyze this properly, and it's also possible that variations in state law would be involved, and I don't practice in Tennessee.  You need to have a lawyer in your area review all the facts, to give you reliable advice on how to deal with this.  One place to look for qualified attorneys is our website,

I'd be very interested to find out, if I were your lawyer, how the bank officer and the plaintiff's attorney made their connection here.  The plaintiff's lawsuit against you is a matter of public record, though, and the bank might have done a routine search that turned this up, and there might be nothing you can do about this.  Anything you already had in writing, that granted the loan, might be critical.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.