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Torts
Misrepresentation
Fraud

Far East National Bank v. United Commercial Bank

Published: Dec. 31, 2002 | Result Date: Jul. 26, 2002 | Filing Date: Jan. 1, 1900 |

Case number: 315690 Verdict –  $9,000,000

Judge

David L. Ballati

Court

San Francisco Superior


Attorneys

Plaintiff

Kyle M. Fisher

John F. Friedemann

Edward F. Donohue III
(Hinshaw Culbertson LLP)


Defendant

William N. Hebert

Edward B. Lozowicki


Experts

Plaintiff

Gary S. Findley
(technical)

Defendant

Daniel Ray
(technical)

Charles R. Doster
(technical)

Michael R. Clabby
(technical)

Facts

Top 1 was an international wholesale trading company located in South El Monte. Top 1 was involved in the sale of goods such as motorcycle parts and personal computer components to buyers in Hong Kong, Singapore and Malaysia as well as in the United States. In or about March 1997, UCB and Top 1 entered into an "accounts receivable financing" loan relationship. On Oct. 5, 1998, FENB put UCB on notice by letter that it was preparing to enter into an "accounts receivable financing" relationship with Top 1. FENB advised that the accounts receivable documents under collection through UCB would be used to secure the line of credit to be advanced by FENB to Top 1. FENB requested a list of the accounts receivable documents currently under collection through UCB. FENB contended that in an Oct. 7, 1998 letter to FENB, UCB failed to advise FENB that Top 1 had been allowed to submit new accounts receivable documents as collateral to replace old accounts receivable documents. As a result, FENB alleged it was induced by UCB to advance money on its line of credit to Top 1 to pay off the UCB line of credit to obtain a first security position in valueless accounts receivable documents.

Deliberation

three days

Poll

10-2 (misrepresentation), 10-2 (punitive damages)

Length

20 days


#80988

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