Case Conclusion Date:April 11, 2000
Practice Area:Contracts & Agreements
Outcome:Court of Appeals ruled in our favor
Description:This case involved a "three way" transaction that went bad. G&J Industries contracted with Louis Kovanda to sell it's business. Kovanda then brought in our client to finance the acquisition and the ongoing business operations with a factoring arrangement (accounts receivable financing). When Kovanda came to Akron to close the deal, he instead decided to pull out after meeting the G&J owners and reviewing documents. However, by the time he'd done that, all of the bank's paperwork had been signed, and our client (the bank) had wired money into the G&J bank accounts. Though the "old" owners of G&J insisted that they weren't responsible for repaying the money or complying with the loan documents - they used the money! Our client then sued to get the money back. The G&J owners counter-sued, claiming the bank acted improperly. The case was tried to a jury, which found in favor of our client and against the G&J owners on all aspects of the case. The G&J owners appealed to the 8th District Court of Appeals, which upheld the trial court in this decision: FIRST CAPITAL CORPORATION v. G & J INDUSTRIES, INC., 131 Ohio App. 3d 106; 721 N.E.2d 1084, 1999 Ohio App. LEXIS 195.