Imperial Valley press. (El Centro, Calif.) 1907-current, 1933-08-07
BANK VICTOR
IN CIVIL SUIT
Bank Of America Wins Import
ant Decision Denying Blame
For Loss In Values.

LOS ANGELES, Aug. 7. (U.D -
The Bank of America Of California
today was victor in suit for $140,-
88l damages brought by Mrs. Fran
.ces H. Upman, in a decision hand
ed down by Superior Judge Leon
Yankwich.
Mrs. Upman sought to force the
Bank of America to replace the sum
she alleged she lost when value of
a trust fund established with the
Merchants National bank dwindled
after this institution merged with
the Bank of America.
Judge Yankwich also gave judg-
ment to the bank against Mrs. Up
man on promissory notes totaling
SOS, $40.
Co-defendants with the Bank Of
America were the TranSamerica
corporation and the Bank of AM
erica National Trust and Savings
association.
Decision in Mrs. Upmans suit
was regarded as significant in that
other damage suits totaling more
than a million dollars had been
filed against Bank of America, all
complaining on the same general
grounds that deprecated price of
Transamerica stock had caused loss
es to investors
The court held the defendant cor
porations and the Merchants Ma
tional Trust and Savings bank,
which was merged with the Bank of
America, were not guilty of any
breach of the trNIt which Mrs.
Upman had established with the
merchants bank in 1877.
Judge Yankwich said he found no
evidence of fraud, Wilful miSfeas-
ance or any other unauthorized act
in the actions of former officers Of
the merchants bank, nor in subse-
quent actions of the merged bank
or of the controlled subsidiaries of
the holding corporation, Transam-
erica.
File Cross Complaint
In a ross-complaint, Bank of
America demanded recovery of $685.
799 1865 damages for alleged fraud
in Misrepresentation of value Of
the Merchants bank stock. Mrs. Up
man was sued on the ground she
was one of many stockholders who
pooled their holdings in Merchants
bank stock to reach 100000 shares
bought by Bank of America at $500
a share.
The cross-suit also named the
old Merchants bank directors, E. j.
Nolan, Cherries R. Bell, Robert I.
Rogers and Marco Hellman.
The directors were accused OF
having represented that the Mer-
chants bank had capital value OF
$12, 100, 900; an unimpaired capital
value of 100000, and surplus OF
SO 100000, and that the stock was
actually worth $500 share.
In reality the Bank of America
charged in the cross suit, bad loans
of the Merchants bank exceeded the
amount represented, and the banks
stock was of no value.
These discoveries, it was alleged,
were made by federal bank exam
liners after the merger of the two in
stitutionS.
Judge Yankwich refused to allow
the defendant corporations to offer
evidence under the cross-complaint
and counter claim.
Judge Yankwich refused to accept
evidence on the croSs-complaint OF
Bank of America on the ground
the officers. of the Merchants bank
were not agents OF Mrs. Upman.
He also held that while she be-
came liable for conditions in the
agreement by joining the stock
pool, she was not liable for any rep
reservations made prior to it since
she knew nothing of them when
she signed the agreement.
The court denied Mrs. Upman's
petition for an injunction to re-
strain permanently the Bank OF
America from foreclosing on the
collateral given for the promissory