By: Derek Hawkins//April 4, 2017//
7th Circuit Court of Appeals
Case Name: 1st Source Bank v. Joaquim Salles Leite Neto
Case No.: 17-1058
Officials: e POSNER, KANNE, and WILLIAMS, Circuit Judges.
Focus: Personal Guarantee – Contract
Defendant Joaquim Neto, an international businessman from Brazil, entered into a trust agreement with Wells Fargo Bank in 2009 to purchase an aircraft for use in his business. Wells Fargo borrowed $6 mil‐ lion from plaintiff 1st Source Bank (a major Indiana bank), pledging the aircraft as collateral, and Neto signed a personal guarantee backing the loan. Three years later the Brazilian tax authorities seized the plane as part of an investigation into Neto’s attempt to avoid paying Brazilian import tax. Neto continued to pay the amount due on the loan until December 2014, but after he stopped paying, 1st Source sued him in a federal district court in Indiana, basing jurisdiction on diversity of citizenship. 1st Source filed a second lawsuit in July 2016 in Brazil, where the plane resides
Motion for Injunction Denied