Third-Party Claims by Vogels Denied

Article excerpt

Third-party claims filed against Westinghouse Credit Corp. by Pepco Inc.-investor Thomas Vogel and his wife were denied Wednesday by U.S. District Judge David L. Russell in Oklahoma City.

The Vogels had made seven claims against Westinghouse, including allegations that the credit firm violated several sections of the Securities Act of 1933 and committed common law fraud. As a result, the Vogels claimed they did not owe financial obligations to Westinghouse and Founders Bank and Trust Co. of Oklahoma City, which was originally sued by Westinghouse for "wrongful dishonor of letters of credit."

The case, originally filed in 1985, consists of claims, cross-claims and counterclaims involving all the entities.

Initially, Westinghouse brought suit against Founders, which then filed a counterclaim against Westinghouse for declaratory judgement as to Westinghouse's entitlement under the letters of credit. That action was decided in favor of Westinghouse earlier this year.

Founders, at the time the bank counterclaimed against Westinghouse, also named the Vogels in a cross-claim petition. …