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September 2012

Portland Office Wins Motion to Dismiss for Directors of Nonprofit (Twice)

Portland, Oregon partner Chris Hawk and associate Dan Nichols won a long hard-fought procedural battle against a Bank suing directors of a nonprofit company for defaulting on a loan.

The Bank sued the directors for allegedly negligently failing to properly supervise the nonprofit's officer that applied for the credit line. The Bank alleged that the information provided by the nonprofit's officer was incorrect and that the Bank was misled in offering the $100,000 credit line.

After granting Mr. Hawk and Mr. Nichols' motion to dismiss the Bank's negligence claims, the court permitted the Bank to replead.

Mr. Hawk and Mr. Nichols brought another motion to dismiss the Bank's newly filed and reworked gross negligence claims and it was granted again, this time without leave to amend, and awarded costs.

Christopher E. Hawk



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