Two people who say they were defrauded out of their homes will have a second chance to argue their cases before the Nebraska Supreme Court next week.
The state's high court already agreed in 2005 that 11 of the 13 individuals or couples who sued Mid-America Financial Investment Corp. had been defrauded by Mid-America's Scott Bloemer and Elena Hollingshead.
All of the plaintiffs said they thought they were signing loan papers with Omaha-based Mid-America to prevent foreclosure on their homes, but in reality, they were signing over their homes to Mid-America and agreeing to become tenants.
The plaintiffs said they were told they were signing loan documents. Some said Hollingshead and Bloemer rushed them through the process shortly before foreclosure.
The state Supreme Court ordered additional proceedings for William Street's and David Welton's claims because their cases differed slightly from the other plaintiffs. The court will hear arguments in the cases on Tuesday morning.
In Street's case, a prior bankruptcy court ruling complicated matters. Mid-America argues that Street's bankruptcy case should prevent him from suing Mid-America for damages, but the courts have sided with Street thus far.
In Welton's case, the Douglas County District Court originally ruled that he hadn't proven any damages, but the state Supreme Court disagreed and ordered the lower court to calculate how much Mid-America owed Welton.
Street and Welton each won damages of about $35,000 and attorneys fees of about $12,000 when their cases were reheard by a Douglas County judge.
Mid-America appealed to argue that neither Street nor Welton were owed anything, but even if Street and Welton are entitle to damages, Mid-America's lawyer David Domina argues the amount should be lower.