Dismissal Denied in Northeast Suit

STAMFORD, Conn. - Northeast Bancorp said a U.S. district judge denied a motion by Bank of New York Co. to dismiss a lawsuit filed by Northeast.

Northeast said District Judge Jose Cabranes denied Bank of New York's motion for a summary judgment that would dismiss Northeast's breach of contract suit.

Northeast claims that Bank of New York reneged on a merger agreement between the two companies. Northeast is seeking at least $350 million in damages.

Northeast quoted the judge as ruling: "There exist genuine issues of material fact relating to the contract claims which preclude the granting of summary judgment."

The judge, however, dismissed Northeast's claim that Bank of New York violated the Connecticut Unfair Trade Practices Act, as well as Northeast's claim of libel. On the libel dismissal, the judge ruled the company can refile the claim.

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