Heritage Bank Talks Resume on Thursday
A pretrial status conference involving the Federal Deposit Insurance Corp. and failed Heritage Bank of Anaheim is scheduled to reconvene Thursday in Orange County Superior Court.
Almost two dozen lawyers, representing both the FDIC and former Heritage Bank officials, filled Judge Robert Todd’s courtroom last week to discuss the multimillion-dollar complaint filed against Heritage by the FDIC on March 15, as well as former Heritage Chairman Douglas Patty’s $54-million countersuit against the government agency.
The FDIC alleges that Patty and others breached their fiduciary duty and were negligent during their tenure at the four-office bank, forcing regulators to close Heritage in March, 1984. The agency is seeking more than $150 million in actual and punitive damages.
Patty’s Allegation
Patty countersued last month, charging that the FDIC reneged on a 1983 agreement in which the outspoken chairman said he relinquished his position at Heritage in return for a promise of no further civil action by the FDIC in connection with the bank’s then-growing financial problems.
Steven Stanwyck, Patty’s attorney, said Friday that the judge asked both sides to outline what documents, testimony and witnesses each wants from the other.
The status conference is scheduled to resume Thursday at 4 p.m. in Orange County Superior Court, Department 20.
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