Jesco Construction Corp. v. Nationsbank Corp., et al.
(October 2002)
Thomas P. Anzelmo on behalf of Underwriters at Lloyds of London, and McCranie Sistrunk Attorneys on behalf of Continental Casualty Company obtained dismissal of plaintiff’s claims in a case entitled Jesco Construction Corp. v. Nationsbank Corp., 830 So.2d 989 (La. 2002). The plaintiff, Jesco Construction Corporation, claimed that its damages from the failed loan resulted in damages amounting to $240,000,000.00. The trial court originally granted in part defendants’ Motion for Summary Judgment finding that no credit agreement existed. However, the district court refused to dismiss plaintiff’s remaining claims because it determined that the Louisiana Credit Agreement Statue did not preclude all actions arising from oral credit agreements. The denial of defendants’ motion was certified to United States Court of Appeal for the Fifth Circuit. The Fifth Circuit after oral argument certified the question to the Louisiana Supreme Court. See Jesco Construction Corp. v. Nationsbank Corp., 278 F.3d 444 (5th Cir. 2001). The Louisiana Supreme Court rendered a decision in favor of defendants’ finding that “[t]he Louisiana Credit Agreement Statute precludes all actions for damages arising from oral credit agreements regardless of the legal theory of recovery asserted.” Jesco Construction Corp. v. Nationsbank Corp., 830 So.2d 989, 992 (La. 2002). The Fifth Circuit after receiving the answer to its certified question from the Louisiana Supreme Court reversed the district court’s partial denial of defendants’ summary judgment motion and ordered the district court to enter summary judgment on all of plaintiffs’ claims. See Jesco Construction Corp. v. Nationsbank Corp., 321 F.3d 501 (5th Cir. 2003).