Bank of America recently won a legal battle with the Jamestown S’Klallam Tribe of Washington. However, Tribal Chairman Ron Allen is not going away quietly.
The two parties had a dispute over a $10 million line of credit attached to a tribal business known as Jamestown Health & Medical Supply Company, with each party accusing the other of breaking promises related to the line of credit. The bank revoked the credit line and sued the tribe in King County Superior Court, ultimately winning a recent $5.2 million judgment.
Among the principal issues were the adequacy of the tribe’s collateral and the tribal company’s “revenue-producing potential,” and the bank appears to have a substantial victory on all counts. BOA and the tribe no longer are doing business together.
While Bank of America has won a victory in court, Chairman Allen is speaking out charging that the bank “made some mistakes on their end” of the deal which, in turn, led to some “bad judgment calls” by the company’s management team.
Stay tuned to see how it all unfolds and what next steps Chairman Allen plans to take.
