CITY OF ATASCADERO v. MERRILL LYNCH

No. A078340.

80 Cal.Rptr.2d 329 (1998)

68 Cal.App.4th 445

CITY OF ATASCADERO et al., Plaintiffs and Appellants, v. MERRILL LYNCH, PIERCE, FENNER & SMITH, INC., et al., Defendants and Respondents.

Court of Appeals of California, First District, Division Four.

As Modified on Denial of Rehearing January 6, 1999.

Review Denied March 31, 1999.


Attorney(s) appearing for the Case

Folger Levin & Kahn, LLP, William A. Morris, Michael A. Kahn, Gregory D. Call and Karen J. Petrulakis, San Francisco, for Plaintiffs and Appellants.

Munger, Tolles & Olson, LLP, Ronald L. Olson, George M. Garvey, Marc T.G. Dworsky, Andrew J. Thomas, Morgan, Lewis & Bockius, LLP, McCambridge, Deixler & Marmaro, Richard Marmaro and Larry S. Greenfield, Los Angeles, for Defendants and Respondents.


McGUINESS, J.

This appeal arises from the wreckage of the Orange County bankruptcy. Appellants are 14 California cities and local agencies1 who deposited funds with the Orange County (the County) Treasurer for investment in the County Investment Pools (the Pool), a statutory investment trust.2 After the Pool collapsed in December 1994 and the County declared bankruptcy, most Pool participants elected to settle...

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