SHAWMUT BANK, N.A. v. KRESS ASSOCIATES

Nos. 92-55907, 92-55913 and 92-55932.

33 F.3d 1477 (1994)

SHAWMUT BANK, N.A., as Trustee; Eaton Vance California Municipals Trust, Plaintiffs, and Municipal Securities Trust High Income Series 10; Municipal Securities Trust High Income Series 11, Plaintiffs-Appellants, v. KRESS ASSOCIATES; Paul F. Klapper; Brobeck, Phleger & Harrison; Jones, Hall, Hill & White; Freytag & LaForce; Bear, Stearns & Company, Inc., Defendants, and First Interstate Bank of California, Defendant-Appellee. SHAWMUT BANK, N.A., as Trustee; Municipal Securities Trust High Income Series 10; Municipal Securities Trust High Income Series 11, Plaintiffs, and Eaton Vance California Municipals Trust, Plaintiff-Appellant, v. KRESS ASSOCIATES; Paul F. Klapper; Brobeck, Phleger & Harrison; Jones, Hall, Hill & White; Freytag & LaForce, Defendants, and Bear, Stearns & Company, Inc.; First Interstate Bank of California, Defendants-Appellees. SHAWMUT BANK, N.A., as Trustee; Eaton Vance California Municipals Trust; Municipal Securities Trust High Income Series 10; Municipal Securities Trust High Income Series 11, Plaintiffs, v. KRESS ASSOCIATES; Paul F. Klapper, et al., Defendants, and Thomas C. Dashiell, Esq., Defendant-Appellee, and Freytag & LaForce, Defendant-Cross-Defendant-Appellee, v. FIRST INTERSTATE BANK OF CALIFORNIA, Defendant-Cross-Claimant-Appellant, v. BROBECK, PHLEGER & HARRISON; Jones, Hall, Hill & White, Defendants-Cross-Defendants-Appellees, v. BEAR, STEARNS & COMPANY, INC., Defendant-Third-Party-Defendant-Appellee.

United States Court of Appeals, Ninth Circuit.

Decided September 8, 1994.


Attorney(s) appearing for the Case

John B. Quinn, Quinn, Emanuel Urquhart & Oliver, Calvin House, Fulbright & Jaworski, Los Angeles, CA, for plaintiffs-appellants.

Ronald K. Meyer, Munger, Tolles & Olson, Los Angeles, CA, Jeh C. Johnson, Paul, Weiss, Rifkind, Wharton & Garrison, New York City, David A. Lombardero, Hughes, Hubbard & Reed; Los Angeles, CA, Thomas Clifton, Jones, Hall, Hill & White, San Francisco, CA, for defendants-appellees.

Before: FLETCHER, PREGERSON and NORRIS, Circuit Judges.


Opinion by Judge FLETCHER; Partial Concurrence and Partial Dissent by Judge NORRIS.

FLETCHER, Circuit Judge:

These three related appeals arise from the collapse of a commercial real estate development project financed by industrial development bonds. Bondholders Eaton Vance California Municipals Trust, Municipal Securities Trust High Income Series 10, and Municipal Securities Trust High Income Series 11 sued the developer and affiliated companies, the trustee...

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