Banco Do Brasil, S.A. v. Latian, Inc.

Plaintiff, cross-defendant and appellant Banco Do Brasil, S.A., Los Angeles Agency, a banking association organized and existing under the laws of Brazil (Banco), and cross-defendant and appellant Joao Stefanon (Stefanon) appeal from a judgment entered against them following a jury verdict in favor of the defendants, cross-complainants and respondents Latían, Inc., a California corporation (Latían), and Amanollah Sarbaz (Amanollah).

This appeal arises from a lender liability claim asserted by Latían and Amanollah by way of a cross-complaint to Banco’s original action which it brought to enforce and recover on certain promissory notes and a written loan restructure agreement. Banco’s claims were rejected by the jury in a verdict which awarded to Latían and Amanollah over $27 million on their cross-complaint.

Latían and Amanollah received a judgment for substantial compensatory and punitive damages for breach of contract and fraud arising from their claim that Banco had orally promised to extend to them a “$2 million line of credit” as an integral part of a transaction in which they purchased the assets of a business by assuming certain secured debts of their seller to…