Bank of America v. State of California
The State of California and several California municipal entities sued Bank of America and Bank of America Corporation (hereafter collectively the Bank) alleging the Bank had mismanaged their municipal bond funds in its capacity as the public entities corporate trust agent. The parties mediated the dispute and a settlement was reached. The settlement was memorialized in a complex 41-page settlement agreement. As part of the agreement, the State agreed to indemnify the Bank against certain types of claims. Subsequently, a dispute arose over whether the State was obligated to indemnify the Bank for a claim that had been asserted by the State of Alaska. When the parties could not resolve that dispute, the Bank filed a complaint against the State seeking a determination that the State was required to indemnify the Bank. The trial court interpreted the settlement agreement and ruled the State was required to indemnify the Bank. The State now appeals contending the trial court interpreted the settlement agreement incorrectly. Court affirm the trial courts judgment.
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