AUSTIN, Texas--(BUSINESS WIRE)--Littlefield Corporation (OTCBB:LTFD) announces that the Second
District Court of Appeal of Florida has affirmed the decision of the
trial court in the consolidated cases involving 800438 Ontario Ltd and
Pondella Hall for Hire, Inc. Please refer to the Company’s
Securities and Exchange Commission filings for further discussion of
these cases.
The Court issued a decision without issuing a written opinion which
appears to preclude any further appeal by Littlefield in regard to this
matter. This aspect is under further legal review.
Littlefield Corporation has previously reserved in its accounts for this
outcome and has made financial arrangements to pay the judgment. This
matter will have no material impact on the Company’s
continuing operations.
Littlefield Corporation has another ongoing litigation matter against
the principal of the two aforementioned corporations involving
allegations of fraud, fraudulent misrepresentation and collection on a
financial guaranty pending in Florida and expected to be tried in May
2007.
Any damages paid in the case decided on appeal will be an element of the
damages to be sought by Littlefield in the May litigation against PhilipFurtney.
Jeffrey L. Minch, President and Chief Executive Officer of
Littlefield Corporation, offered the following comments:
"This is the second act in what will likely be a four act
play before this matter is fully and finally resolved.
"In May, the Company will finally be able to present its
evidence in regard to the alleged fraud, fraudulent
misrepresentation and his obligations under a financial guaranty
against Philip Furtney. Furtney avoided service for almost ten
years and the Company was only able to serve him at the time of
the trial against the above-named corporations.
"The Company will be the plaintiff in this matter and will
be presenting evidence on fairly narrow subjects --- did Furtney
allegedly commit fraud in not revealing the existence of an
ongoing investigation immediately prior to the sale of the bingo
halls, did Furtney allegedly fraudulently induce the Company to
enter into the transaction and is Furtney liable under his
personal financial guaranty?
"Many of the facts pertaining to this case were explored at
the trial of the corporate entities in which the Company was the
defendant. The facts at that trial appear to support the Company's
allegations.
"While this is a disappointment in the short term, this
matter will have no material impact on the Company's operations."
In accordance with the safe harbor provisions of the Private
Securities Reform Act of 1995: except for historical information
contained herein, certain matters set forth in this press release are
forward-looking statements that are subject to substantial risks and
uncertainties, including government regulation, taxation, competition,
market risks, customer attendance, spending, general economic conditions
and other risks detailed in the Company’s
Securities and Exchange Commission filings and reports.
