A team of Moffatt Thomas litigators led by Jim Martin successfully defended Washington Capital Management, Inc., Washington Capital Management Trust Fund, and the Western Bank of New York in a complex lender liability lawsuit brought by a Seattle developer in federal court.

In March of 2003, the case of  BOISE TOWER ASSOCIATES, LLC, a Washington Limited Liability Company, vs. WASHINGTON CAPITAL JOINT MASTER TRUST MORTGAGE INCOME FUND, was initiated in the United States District Court for the District of Idaho when Boise Tower Associates, LLC, an entity formed by Rick Peterson, filed a lender liability suit against our lender clients. Moffatt Thomas attorneys Jim Martin, Randy Peterman, Kimberly Evans-Ross and Tyler Anderson took on the defense of the case. Plaintiff alleged that our clients breached a loan commitment to finance the Boise Tower project which was slated to be Idaho tallest mixed use building. Plaintiff claimed $29 million in actual damages plus punitive damages. The source of the financing was from the retirement accounts of union laborers and when the developer did not live up to his end of the loan commitment, including requirements regarding the use of union labor for the project, the loan commitment expired, the financing did not take place and the loan did not close.

After nearly three years of hard fought litigation, numerous depositions and motion practice, Federal Magistrate Judge Mikel H. Williams granted our clients summary judgment; on April 2, 2007 (click here for a copy of the Memorandum Decision and Order), and an immediate appeal to the United States Court of Appeals for the Ninth Circuit followed. Following briefing and oral argument by our attorneys, on April 9, 2009, the Ninth Circuit issued a memorandum decision affirming Judge Williams' grant of summary judgment dismissing all of plaintiff’s claims (click here for a copy of the Memorandum).