A California appeals court has dismissed a $5 million judgment against Citizens Business Bank of Ontario, Calif., and ordered a new trial in the bank's dispute with a San Diego developer.
In May 1998 a San Bernardino County Superior Court jury ruled that $2.1 billion-asset Citizens deceived TRI National Development Corp. when it sold an 88-bed retirement home to the developer in 1992.
TRI claimed that Citizens, which had foreclosed on a previous developer, failed to disclose that the retirement home's parking lot was encroaching on a neighboring property. Not having enough parking spaces to attract tenants caused TRI to default on the $2.7 million mortgage in 1993, it said.
Last week the California Court of Appeals for the Fourth District ruled that Citizens is entitled to a new trial. D. Linn Wiley, Citizens' chief executive officer, said resolution could take several years.