Monarch Bank Ordered to Pay Settlement

Monarch Bank in Laguna Niguel, which posted a meager $24,000 profit last year after an $874,000 loss in 1984, has been told by a Superior Court jury in Los Angeles to pay $111,450 to a service company to settle a contract dispute.

Tridatatron Software Services, which had claimed that the bank failed to pay the amount as a termination fee, won the verdict Jan. 30 after a two-week trial. The bank has appealed the verdict.

Monarch had sued Tridatatron, which recently moved to Anaheim from Norwalk, claiming that the computer company failed to perform on a contract for collecting real estate loans for the bank.

Tridatatron countered, accusing Monarch in its successful suit of failure to pay a required fee when it terminated its service contract in August, 1984.

Capital Position Improved

Meanwhile, the bank’s unaudited report to the State Banking Department showed that Monarch has improved its capital position primarily by reducing assets to $84.5 million from $88.7 million. Its ratio of capital to assets was 7.1% on Dec. 31, compared to 6.85% a year earlier. The bank’s deposits also declined last year to $78.4 million on Dec. 31 from $80.6 million a year earlier.

Raymond Cox, Monarch Bank’s chairman and co-founder, declined to discuss the financial results until auditors complete their review and issue audited year-end results.

The 6-year-old bank is still without a permanent president after the Jan. 19 death of co-founder Thomas H. Thornton.