#1306472, Santa Barbara Olive Company, et al. v. Cathy Latou et al., filed 4/2/09

Defendant’s Attorney: Lisa M. Simonetti                         Dept. 4, Hon. James W. Brown

Verdict: $71,048.91 for Defendant/Cross-complainant Chase Bank

Plaintiffs hired Defendant Latou as their controller in May 2007 and within a few months Defendant Latou engaged in a course of embezzling  from Plaintiff company that totaled more than $500,000.  Defendant Latou would use the company credit card for cash advances at casinos which she used for gambling and other personal purchases, and then forge the credit card payments using company checks.   Latou was sentenced  to eight years in prison for felony grand theft.  Plaintiffs sued the credit card company for failing to take greater efforts to intercept the acts of embezzlement.   Chase Bank cross-complained for money due  on the credit card.  Chase maintained they did all that was required in sending out monthly statements that were apparently never reviewed by the owners of Plaintiff’s company.  Jury found Chase was negligent but that they were not a substantial factor in causing the loss.  Jury found Plaintiff company and owners had breached the contract and awarded Defendant/Cross-complainant $71,048.91 as balance due on credit card.  Plaintiff's motion for new trial, motion for judgment notwithstanding the verdict and motion to tax Defendant/Cross-complainant's costs were not decided as the parties reached a confidential settlement on all issues.