BMB Properties v. Federal Deposit Insurance Corporation
Published: Apr. 18, 1998 | Result Date: Mar. 3, 1998 | Filing Date: Jan. 1, 1900 |Case number: C669033 Bench Verdict – $0
Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
David S. Kadin
(Kaplan, Kenegos & Kadin)
Defendant
Experts
Plaintiff
Richard Stromberg
(technical)
Thomas A. Tarter
(technical)
William E. Bowman Jr.
(technical)
Defendant
Sim C. Hixson
(technical)
Facts
On Oct. 31, 1984, plaintiff BMB Properties' former partners obtained a $750,000 loan from Mercury Savings by allegedly forging trust deeds encumbering the partnership's two apartment buildings. Mercury was taken over by the defendant Federal Deposit Insurance Corporation. The plaintiff brought this action against the defendant based on cancellation of written instrument, fraud and slander of title theories of recovery.
Settlement Discussions
The plaintiff made a settlement demand for $250,000 as attorney fees. The defendant made an offer to cancel the deeds of trust with no attorney fees.
Damages
The plaintiff claimed $710,000 in damages.
Result
The court ruled in favor of BMB and held that the deeds of trust were forged; that the former partners did not have ostensible authority to encumber partnership property; and that the deeds of trust were invalid and, therefore, cancelled. The court ruled in favor of the FDIC on BMB's claim of damages for slander of title. BMB's attorneys Kaplan, Kenegos & Kadin were awarded $637,327 in attorney fees under the lodester theory. The notary public who notarized the forged deeds of trust previously paid $90,000 to settle the case.
Other Information
The judgment was reached approximately 10 years after the case was filed.
Length
three days (Bench Trial)
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