Nabuke vs. North County Bancorp

Gerard William O'Brien

Case Conclusion Date:June 24, 1999

Practice Area:Lawsuits / Disputes

Outcome:Plaintiff took nothing at trial

Description:Since people involved with this case are still in business the description of the case true, but the names have been changed. The Case was Heard in Superior Court of California in Santa Ana North County Bancorp (NCB) made bridge loans between small loan funders and large banks that usually last less than 90 days. Nabuke put up $300,000.00, and the Officers brought in a $20,000,000.00 line of credit line upon which they could draw to fund the bridge loans. Nabuke came under the influence of a person who wanted to oust my clients and have a brief but sufficient period of time to loot the credit line. Actually the plan was to send the money in a series of checks to Asia. This person convinced Nabuke that he had been robbed of his $300,000.00. She and he came into the corporate head quarters and operation office with armed men and physically ousted my clients. The intruding shareholder and his friend could not access the accounts and after about six hours they left and we took the business back. The next day we were served with a complaint for fraud and numerous other transgressions and found our self in an evidentry hearing where the word "Co-mingle," slipped over one lip and the next thing we knew we had a receiver. The next day we left, leaving everything behind for the receiver, in good order and we formed a new corporation. The line of credit was based on my client's business relations and industry history of success in this niche market, followed the new corporation which was able to continue on without the Nabuke cash investment. Nabuke's case lingered in the courts for about eighteen months, went to trial which lasted three days and no injury to the plaintiff was found. Nabuke lost his investment which was mostly used to set up an 8,000 square foot office, with furniture, phone banks, phone system and computer network which was liquidated after the receiver completed and collected all of the out standing loans. The Plaintiff went through three law firms from L.A. paying each a lesser retainer and slipping down the rungs BAR Status. I litigated this case as counsel for my client and handled perhaps nine other lawsuits for my client during this eighteen month period, most settled successfully, two other cases went to trial we were defending and plaintiff took nothing. Unfortunately we were not awarded attorney's fees. The most important aspect of this case for me was we kept the client's business going, protected the credit line successfully and were able guide the business to a more manageable risk level with a smaller but better trained and more cohesive team which in turn enabled the company to have fewer but more profitable relations. Client retired and his sons were at last report carrying on a new version of the bridge loan business in Atlanta,. Georgia

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