S. C. Anderson, Inc. v. Bank of America National Trust & Savings Ass'n
Opinion
Opinion
Dibiaso, J.
The Bank of America N.T. & S.A. (Bank) appeals from the judgment entered on a jury verdict awarding $248,004.60 compensatory and $300,000 punitive damages against the Bank and in favor of S. C. Anderson, Inc. (Anderson). The Bank was the lender for the construction and development of two commercial building projects in Bakersfield. The borrowers and owners (developers) of the buildings, respectively, were limited partnerships called California Plaza Investors II (CP II) and Truxtun Associates II (TA II). Each of the buildings was identified by reference to the particular limited partnership which owned it.
Anderson was engaged by the developers to build tenant improvements in the two buildings. The developers ultimately defaulted on the loans and the Bank initiated proceedings to foreclose its security interests in the buildings. A portion of Anderson’s charges for the construction of tenant improvements was not paid. Anderson brought an action against the Bank, claiming damages, based upon a cause of action for fraud arising out of certain communications between Anderson and the Bank during the course of the project.