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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 4, 1999
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COMMUNITY BANCORP INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 000-26505 33-0859334
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(State or other jurisdiction (File number) (I.R.S. Employer
of incorporation) Identification No.)
130 WEST FALLBROOK STREET, FALLBROOK, CA 92028
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(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code: (760) 723-8811
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(Former name or former address, if changed since last report)
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ITEM 5. OTHER EVENTS
A Riverside County (California) Superior Court jury rendered a decision
this week against Community Bancorp Inc.'s (the "Company") wholly owned
subsidiary, Fallbrook National Bank (the "Bank"), in connection with a dispute
with a former employee of the Bank. The amount of the damages awarded was
approximately $800,000 plus court and legal costs.
The Bank intends to appeal the decision and has been informed that the
appeal process may take up to two years.
The Bank intends to take an accrual for the full amount of the award.
A copy of the a press release issued August 4, 1999 by the Bank and the
Company is attached hereto.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS
(c) Exhibits
99 Press Release
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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.
Dated: August 4, 1999 COMMUNITY BANCORP INC.
By: /s/ Thomas E. Swanson
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Thomas E. Swanson
President
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EXHIBIT INDEX
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EXHIBIT NO. DESCRIPTION PAGE NO.
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99 Press Release
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[LETTERHEAD OF FALLBROOK NATIONAL BANK]
FALLBROOK NATIONAL BANK, SUBSIDIARY OF
COMMUNITY BANCORP, INC., ANNOUNCES ADVERSE
LITIGATION JUDGMENT AND INTENT TO APPEAL
FOR IMMEDIATE RELEASE
Contact: Tom Swanson
Fallbrook National Bank
(760) 723-6001
This week a Riverside County Superior Court jury rendered a decision in favor
of a terminated ex-employee of Fallbrook National Bank regarding the pay-out
of an Incentive Program offered by the Bank in 1996. The ex-employee was
awarded damages of approximately $800,000 plus court and legal costs.
The Bank intends to appeal the decision and take an accrual for the full
amount of the award. On a pretax basis, Fallbrook National Bank made
$1,251,000 year to date and $735,000 after taxes. The Bank expects quarterly
profitability to continue with the exception of this one time pre-tax charge
to earnings. The accrual will be reversed in the event of a successful
appeal. Bank management has been advised that the appeal process could take
up to two years to conclude.
President Tom Swanson states "This award is a travesty. It is totally
unjustified and on the advice of counsel, we are going to appeal. There is no
other litigation pending against the Bank. This is one time aberration."
Statements concerning future performance, developments or events concerning
expectation for growth and market forecasts, and any other guidance on future
periods, constitute forward-looking statements which are subject to a number
of risks and uncertainties which might cause actual results to differ
materially from stated expectations.
