Court of Appeals affirms $35.9 million to Firm client, SoCal.
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On August 22, 2005, the U.S. Court of Appeals for the Federal Circuit affirmed $35.9 million of damages awarded by the U.S. Court of Federal Claims to Firm clients Southern California Federal Savings & Loan Association and its parent company SoCal Holdings, Inc. The Federal Circuit expressly deferred to the credibility findings of the Trial Court relative to the testimony of SoCal's expert and fact witnesses and rejected all government defenses relative to the "wounded bank" damages awarded to the institutional plaintiffs. Additional damages for SoCal's costs incurred in replacing the capital lost to the bank as a result of the government's breach of contract were remanded for further factual development by the Trial Court in light of recent Winstar-related precedent concerning such damages.