SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
MAY 5, 1998
Date of Report
(Date of earliest event reported)
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Commission File No. 0-29164
TRI-NATIONAL DEVELOPMENT CORP.
(Name of Small Business Issuer in its charter)
Wyoming 33-0741573
(State of other Jurisdiction I.R.S. Employer
of incorporation or organization) Identification No.
480 Camino Del Rio S., Suite 140
San Diego, California 92108
(Address of principal executive officers)
(619) 718-6370
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On May 5, 1998, Tri-National Development Corp. and its wholly owned
subsidiary, MRI Grand Terrace, Inc., received verdicts in their favor for
fraud, intentional misrepresentation and deceit/negligent misrepresentation
against Chino Valley Bank of Ontario, California, now known as Citizens
Business Bank (AMEX:CVB), in the Superior Court of San Bernardino,
California. The verdicts, 12-0 and 11-1, respectively, returned by the
jury derive from a transaction in which Tri-National and MRI Grand Terrace,
Inc. purchased a bank- owned retirement hotel from Chino Valley Bank in
March 1992 for a total consideration of $6,270,000. The bank failed to
disclose that the property, which the bank had previously financed in the
construction and development phases in 1988, did not own its apparent
parking lot for 70 cars. Contrary to the banks representations, the
Conditional Use Permit (CUP) under which the hotel was operating was in
violation, which restricted the ability of the Company and MRI Grand
Terrace, Inc. to operate, refinance or sell the facility.
On May 11, 1998, Tri-National Development Corp. and its wholly owned
subsidiary, MRI Grand Terrace, Inc., received judgements totaling almost $5
million dollars, including punitive and compensatory damages, plus pre-trial
interest. Beginning May 7th, 1998 the $5 million judgement begins
accruing, post judgement interest of 10% or $1,400 per day until the full
award is paid.
On December 3, 1998, Tri-National Development Corp. and its wholly owned
subsidiary, MRI Grand Terrace, Inc., received an additional award,
including attorneys' fees, of $185,141. These costs are in addition to the
existing judgement for punitive and compensatory damages, including pre-trial
interest, of approximately $5,000,000.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: May 5, 1998
TRI-NATIONAL DEVELOPMENT CORP.
(Registrant)
By: Michael A. Sunstein,
President, Chief Executive
Officer and Chairman of
the Board
