Farmer Sues Bank, Reaps $60 Million

A jury Wednesday awarded $60 million to a strawberry farmer who accused Wells Fargo Bank of pulling the plug on his plans to build a high-tech farm.

The jury deliberated for a little more than two days before announcing its decision favoring farmer Garth Conlan of Castroville, a clerk for Superior Court Judge Robert O’Farrell said.

The jury also directed Conlan to pay Wells Fargo a total of $5.35 million in principal and interest as of June 1 in repayment of money loaned to him by Wells Fargo beginning in 1982.

The $60-million award won by Conlan and his business, Lightning Farms, in the 34-day trial includes $10 million in compensatory damages and $50 million in punitive damages.

Conlan filed a $100-million suit against Wells Fargo on Nov. 7, 1985, accusing the bank of fraud, breach of contract and intentional infliction of emotional distress in connection with an $8-million loan to Conlan in 1982.

Conlan put up his 1,505-acre north Monterey County ranch as collateral for the loan, intending to put the money into an innovative farm using high-tech berry coolers, special seeds and computerized marketing plans.

Wells Fargo increased Conlan’s credit to $9.5 million after the first year of operation and encouraged him to build a cooling facility, Conlan said, but began foreclosing on the operation in November, 1983, forcing Conlan to declare bankruptcy.

Wells Fargo lawyers countered that Conlan was a poor manager who lost too much money and went beyond his original loan agreement with the bank.