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
Court
San Francisco Superior
Attorneys
Plaintiff
Edward F. Donohue III
(Hinshaw Culbertson LLP)
Defendant
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
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