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Banking
Bad Faith
Cross-Complaint

Sumitomo Bank of California v. Homer Fu, etc., et al. and Various Cross-Actions

Published: Jul. 23, 1994 | Result Date: Jun. 24, 1994 | Filing Date: Jan. 1, 1900 |

Case number: BC079155 –  $5,600,000

Judge

William E. Burby

Court

L.A. Superior Central


Attorneys

Experts

Facts

On April 4, 1994, the Court granted Plaintiff Sumitomo Bank of California's motion for summary judgment on its complaint for judicial foreclosure of the Royal Host Motel in Los Angeles against Defendants Homer Fu, Diana Fu, Young Tsai, Wan Ping Tsai, Katherine E. Huang, and King M. Huang. The foreclosure action was brought because the borrowers failed to pay their 5-year loan when it matured on July 25, 1992. The Court also granted Plaintiff's motion for summary judgment on its guarantee against Defendant Diana Fu for approximately $1,000,000. A cross-complaint was filed against the bank by Cross-defendants Royal Host Holding Company, Inc., Homer Fu, Young Tsai, Wan Ping Tsai, Chin Chuan Tsai, and Chung Chu Tsai for fraud and breach of the implied convenant of good faith and fair dealing.

Settlement Discussions

Demands and offers were not disclosed.

Damages

Cross-complainants asked the jury to award $5,600,000 plus punitive damages.

Result

The jury found in favor of Cross-defendant Sumitomo Bank of California on both claims of fraud (fraudulent concealment and fraudulent promise without intent to perform) and on the issue of breach of the implied covenant of good faith and fair dealing.

Other Information

The cross-complaint was severed and went to jury trial June 3, 1994.

Deliberation

3 days

Poll

12-0 (fraud), 10-2 (breach of the implied convenant of good faith and fair dealing)

Length

19 days


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