Ledger Detail
 

Litigation loss
Account number 6805
For the year ended 1
R. Kelly	$340,000
L. Green	250,000
Total	$590,000

Attorney Responses
 

1.  Letter dated February 25, Year 2 "I advise you that at and since December 31, Year 1, I have not been engaged to give substantive attention to or represent ENJ Bank Co. in connection with any pending or threatened litigation, claims, or assessments, except as follows: M. Singer v. ENJ Bank Co. "This matter commenced in October, Year 1.  The plaintiff alleges discrimination relating to his termination in March Year 1.  The company intends to defend this case vigorously.  At this time, we are unable to evaluate the likelihood of an unfavorable outcome or estimate the amount or range of potential loss.  The plaintiff is demanding $75,000."

 

2.  Letter dated February 24, Year 2 "I advise you that at and since December 31, Year 1, I have not been engaged to give substantive attention to or represent ENJ Bank Co. in connection with any pending or threatened litigation, claims, or assessments, except as follows: R. Brown  v. ENJ Bank Co. "This matter commenced in March Year 1.  The plaintiff alleges that a machine malfunction caused his arm injury.  We estimate a loss of $350,000."

 

3.  Letter dated February 24, Year 2 "I advise you that at and since December 31, Year 1, I have not been engaged to give substantive attention to or represent ENJ Bank Co. in connection with any pending or threatened litigation, claims, or assessments, except as follows: R. Kelly v. ENJ Bank Co. "This matter commenced in December Year 1.  The plaintiff alleges a missing brick caused her to trip and break her leg.  The case was  settled for $375,000 on February 15, Year 2.

 

4.  Letter dated February 23, Year 2 "I advise you that at and since December 31, Year 1, I have not been engaged to give substantive attention to or represent ENJ Bank Co. in connection with any pending or threatened litigation, claims, or assessments, except as follows: L. Green v. ENJ Bank Co. "This matter commenced in December Year 1.  The plaintiff alleges a missing brick caused him to fall and hurt his wrist.  We believe it is probable that there will be a loss in the range of $200,000 to $300,000.  There is no amount in the range that is a better estimate than any other amount within the range.

 

5.  Letter dated February 25, Year 2 "I advise you that at and since December 31, Year 1, I have not been engaged to give substantive attention to or represent ENJ Bank Co. in connection with any pending or threatened litigation, claims, or assessments, except as follows: M. Grass  v. ENJ Bank Co. "This matter commenced in December Year 1.  The plaintiff alleges that he was distracted by a billboard advertisement, which caused him to hit another car.  We believe that this case is frivolous and that a loss is remote."

 

Minutes of Special Meeting
 

ENJ Bank Co. Minutes of Special Meeting of December 15, Year 1 Members present:   A. Pablo      B. Chen      C. Johnson   Not present:             D.  Anderson Agenda Item:           Recent litigation related to missing brick in walkway of Branch                                    No. 256 This special meeting of the board of directors has been called to discuss the recent litigation due to injuries sustained as the result of a missing brick outside of Branch No. 256.  On December 1, Year 1, two individuals fell due to the missing brick and we are now facing two separate lawsuits.  The brickwork was fixed the next day.   The first case is R. Kelly v. ENJ Bank Co.  R. Kelly broke her leg.  She is demanding $375,000.  The lawyers think this will resolve for an amount of $325,000 in court versus $350,000 if we settle outside of court.  To keep litigation costs low and to reduce any bad publicity that may result, we will advise the lawyers to try to settle outside of court and will accrue the loss for $350,000. The second case is L. Green v. ENJ Bank Co.  In this case, L. Green alleges a missing brick caused him to fall and hurt his wrist.  Legal counsel has advised us that counsel believes that there is going to be a loss in the range of $200,000 to $300,000.  Unfortunately, the attorneys do not feel that L. Green will settle outside of court.

 

Email from Risk Manager
 

From:  riskmanager@ENJBank.com Sent:  December 24, Year 1,  2:15 p.m. To:  controller@ENJBank.com, inhouselegalcounsel@ENJBank.com Subject:  Litigation with R. Brown Controller, I confirmed with our insurance carrier that the injury of R. Brown related to the work equipment is covered under our insurance.  Our insurance coverage will cover loss amounts up to $1,000,000. Please let me know if you have any further questions. Thank you, Risk Manager

Email from In-house Legal Counsel
 

From:  inhouselegalcounsel@ENJBank.com Sent:  January 5, Year 2  12:15 PM To:  controller@ENJBank.com Subject:  Litigation updates for M. Singer and M. Grass Hi Controller, I am working with our external lawyers on the M. Singer case, which is still ongoing.  We are certain that we are going to lose the case, but I am still unable to provide an estimate for the amount.   The loss related to M. Grass is remote.  This lawsuit does not have any serious merit to it. Thank you, In-house Legal Counsel