Franzone v. Merchants Trust & Savings Bank

KLIEBERT, Judge.

This litigation commenced when the Merchants Trust and Savings Bank (hereafter the Bank) brought suit to avoid two leases between itself and Vincent Franzone, its one time officer and controlling shareholder.1 On a finding that the 1978 lease did not in fact lease space which the Bank was not already entitled to occupy and, therefore, constituted betrayal of the officer’s fiduciary duty to the Bank, the Fourth Circuit in Merchants Trust and Savings Bank v. Vincent Franzone, 388 So.2d 851 (La.App. 4th Cir.1980), writs denied, 395 So.2d 333 (La.1980), reversed the trial judge…