January 6, 1995 in Nation/World

Farm Credit Services Loses Round In Court

From Staff And Wire Reports

The Washington state Supreme Court has struck down an appeal by Farm Credit Services in Spokane to overturn a jury’s decision that the agricultural bank pay $4.89 million in lost revenue and debt forgiveness to an elderly Franklin County couple.

Late last month, the court unanimously upheld a 1992 jury award and ruling that a branch of the bank had reneged on a loan made 16 years ago to farmers Barbara and Lyle MacHugh of Eltopia, Wash.

Farm Credit in 1979 had agreed to finance the MacHugh’s 200-acre evergreen nursery, but later forced the couple into debt and foreclosed on the property, the jury found.

The MacHughs, who were represented by the Spokane law firm of Winston & Cashatt, plan to pick up the check today, the law firm said.

Meanwhile, their evergreen nursery has turned into a 30-foot high forest as they waited for years to resolve the dispute.

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