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Federal Court Denies In Large Part Former CEO's Motion For Summary Judgment

Since July 1, 2003, WW, as co-lead counsel, has pursued claims of mismanagement against the former CEO of North Country Financial Data (nka Mackinac Financial), the Michigan bank made famous in the opening minutes of Michael Moore's film, Bowling for Columbine. On January 2, 2008, the United States District Court for the Western District of Michigan issued an order denying in large part a motion for summary judgment and denying in full motions in limine brought by the former CEO, Ron Ford, the defendant in the shareholder litigation lawsuit. Ford is alleged to have grossly mismanaged the bank, causing it to be placed under an FDIC Cease and Desist Order, damaging the bank and its shareholders.

In its opinion, the Court acknowledged that Ford could be found liable - based solely on the loans charge-offs from July 2000 through 2004 - for more than $34 million worth of bad loans, which may increase to more than $62 million at trial based on plaintiff's damage experts. While the Court recognized that a genuine issue of material fact exists as to causation, it pointed out that Michigan law recognizes that each joint tortfeasor "is liable for the entire harm absent a superseding cause." The Court also denied Ford's attacks on plaintiff's three experts. The case is scheduled to go to trial at the end of February 2008. For a copy of the opinion, click here.