Coffee Investors' Loan Contract Suit Invalid, FDIC Says

Law360, Washington (August 11, 2011, 4:08 PM EDT) -- The Federal Deposit Insurance Corp., as receiver for Westernbank Puerto Rico, argued Wednesday that coffee company investors' claims that the bank misled them about a loan agreement to finance the $40 million acquisition of the company were barred by a 1989 financial reform law.

The plaintiffs claim that the loan wrongly allowed the bank to take control of the Yaucono Coffee Business and forced them to surrender a large portfolio of real estate assets as collateral. They allege breach of contract, lender liability, tortuous interference with...
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Case Information

Case Title

Giraud Padro et al v. Federal Deposit Insurance Corporation et al


Case Number

3:10-cv-02041

Court

Puerto Rico

Nature of Suit

Banks and Banking

Judge

Jay A. Garcia-Gregory

Date Filed

October 25, 2010

Government Agencies

UK Financial Services

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