WesCorp’s Lane Demands Reimbursement and Trial
Former WesCorp Chief Financial Officer Todd Lane and his legal team have asked U.S. District Judge George Wu’s Los Angeles federal court to drop WestCorp's case against him, pay his legal fees and award him damages, according to legal documents filed Apr. 4. Lane also demanded a jury trial.
He made the requests in an amended counterclaim to an amended complaint by the NCUA in the case arising from WesCorp’s 2009 failure, which was caused by investment losses that are responsible for the majority of corporate assessments credit unions now pay to the NCUSIF.
Lane submitted requests in January, February and March of 2011 to the NCUA for defense cost reimbursement, an advance on future defense costs, and costs associated with his efforts to be granted indemnification. The NCUA did not respond within 180 days, and therefore denied the claims.
In addition, Lane argued that California law indemnifies him as an officer of the corporation. Lane’s attorneys cited California Labor Code 7237, which provides that an officer of a corporation should be indemnified against expenses if successful on the merits in defense of any proceeding brought by or in the right of the corporation. Further, the California code provides that the officer may be indemnified “even if he or she has been adjudged to be liable.”