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Banking
Third Party Beneficiary

Farmers Group, Inc., a corporation, et al. v. State Street Bank and Trust Co. of California, a national banking association

Published: Jul. 22, 1995 | Result Date: May 17, 1995 | Filing Date: Jan. 1, 1900 |

Case number: BC095344 –  $5,800,000

Judge

Daniel A. Curry

Court

L.A. Superior Central


Attorneys

Plaintiff

Leonard Venger

Justin Hughes


Defendant

Peter B. Dolan

Lisa Detrick


Experts

Plaintiff

Ronald R. Rossi
(Rossi, Hamerslough, Reischl & Chuck) (technical)

Belinda Baskette
(technical)

Defendant

Thomas E. Randlett
(technical)

William E. Barrett
(technical)

Facts

This case involves an investment by Plaintiff Farmers Group, Inc., of $10,000,000 in certain short-term note certificates issued on July 6, 1989, by Defendant American Pacific Capital Corporation. The transaction was handled through Defendant State Street Bank and Trust Company, a corporate trustee, under an indenture trust. Plaintiff Farmers was a third-party beneficiary of the indenture trust agreement between Defendant State Street Bank and American Pacific Capital Corporation (APCC). The trust was to last for 5 years and Farmers was to receive, in payments under a promissory note, its $10,000,000 together with interest at the rate of 11.5 percent per annum. As of April of 1993, Defendant APCC defaulted, owing Farmers $6,000,000 in principal and interest, as of that date.

Settlement Discussions

Plaintiff contends it demanded $2,500,000 reduced to $2,200,000; and Defendant State Street Bank offered $200,000 increased to $500,000 on the first day of trial.

Damages

$6,000,000 in principal and interest as of April 1993; cost; and interest since April of 1993.

Other Information

This case was filed in December of 1993; one year and five months prior to this result.

Deliberation

4 days

Poll

not disclosed

Length

11 days


#103995

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