Judge Dismisses Claim B of A Plotted to Overturn Verdict

A federal judge has dismissed a woman’s claim that Bank of America and two state appeal court justices plotted to overturn a $26-million jury award against the bank that she and her partners in an apple-processing business received.

U.S. District Judge Marilyn Hall Patel in San Francisco on Monday rejected Irene O’Connell Kruse’s $200-million civil rights claim, calling it “wholly without merit” and based on “irrelevant, scurrilous charges.” The judge also said she is considering imposing sanctions on Kruse’s attorney, Frederick Watson of Walnut Creek, Calif., for filing the suit. Watson declined to comment.

A Sonoma County jury awarded Kruse and her partners $47 million in 1985. They had accused the bank in a lawsuit of fraud for allegedly causing the collapse of her Sebastopol, Calif., apple business by failing to lend her money after promising to do so.

The award was later reduced to $26 million. A three-judge appellate panel then unanimously overturned the verdict, citing a lack of sufficient evidence. A Sonoma County judge is considering whether to grant a new trial, a Bank of America spokesman said.

After the award was overturned, Kruse filed a lawsuit alleging that Bank of America had conspired with Justices William Newsom Jr. and John Racanelli of the State Court of Appeal in San Francisco to quash the jury award. The defendants denied all of the charges.