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Contracts
Breach of Contract
Breach of Fiduciary Duty

Julio Abraham, et al. v. Bank of America NT & SA

Published: Jan. 24, 1998 | Result Date: Sep. 15, 1997 | Filing Date: Jan. 1, 1900 |

Case number: C943076CAL Verdict –  $0

Judge

Charles A. Legge

Court

San Francisco Superior


Attorneys

Plaintiff

Robert C. Gebhardt

Abraham A. Simmons

Stephen H. Dye
(Mortenson, Taggart & Adams LLP)


Defendant

James B. Wright

Louis J. Bachleder J.D.


Experts

Plaintiff

David Levin
(technical)

Robert Landau
(technical)

Timothy Crane
(technical)

Defendant

William J. Schmidt
(technical)

Thomas Ransom
(technical)

Facts

Plaintiffs in this case were 151 San Francisco garbage men who owned stock in San Francisco's garbage company, Norcal. In 1986, plaintiffs sold their stock for cash and notes. In 1987, Norcal merged with another company, triggering plantiffs' redemption rights. The plaintiffs brought this action against the successor indenture trustee on the notes based on breach of contract, breach of fiduciary duty and negligence theories of recovery.

Settlement Discussions

The plaintiffs made a settlement demand for $20 million. The defendant made an offer of $4 million.

Damages

The plaintiffs claimed the redemption value plus $20 million in lost interest.

Other Information

The verdict was reached approximately two years and two months after the case was filed. A mediation was held on March 21, 1997, before Tony Piazza of Gregorio, Haldeman & Piazza, resulting in no settlement. At trial, the jury found breach of fiduciary duty but no causation.

Deliberation

six hours

Poll

6-0

Length

three weeks


#87364

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