<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
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 18, 1995
-----------------------
DEPOSIT GUARANTY CORP.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
MISSISSIPPI 0-4518 64-0472169
- ------------------------------- ------------ -------------------
(State or other jurisdiction of (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
210 EAST CAPITOL STREET, JACKSON, MS 39201
- ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (601) 354-8564
-----------------------------
<PAGE> 2
ITEM 5. OTHER EVENTS
The following cases, which relate to the placement of collateral protection
insurance, have been filed against the Company's subsidiary, Deposit Guaranty
National Bank (the "Bank"):
1. Marion Bentley v. Deposit Guaranty National Bank and Prudential Property
& Casualty Insur. Co., Civil Action No. 9:95CV292PS in the United States
District Court for the Southern District of Mississippi, Hattiesburg, Division.
In this matter, which was filed on August 18, 1995, the plaintiff sued the
defendants on behalf of himself and all others similarly situated with respect
to collateral protection insurance obtained by the Bank from Prudential
Property & Casualty Insurance Company. The plaintiff claims causes of action
for breach of the duties of good faith and fair dealing, violation of the Fair
Debt Collection Practices Act, violation of federal antitrust laws, breach of
fiduciary duty, fraud, failure to comply with Regulation Z, infliction of
emotional distress, and damage to credit reputation. The plaintiff seeks
compensatory damages for alleged excessive insurance, interest charged thereon,
and attorneys' fees. Additionally, the plaintiff seeks actual damages for
emotional distress, damage to credit reputation, prejudgement interest,
compensatory damages, treble damages and punitive damages. The plaintiff
estimates compensatory damages of $20 million and estimates punitive damages in
the amount of $50 million. This action has not been certified by the court as
a class action.
2. Deposit Guaranty National Bank v. John Dear, Civil Action No. 95-49,
Circuit Court of Rankin County, Mississippi. This action was instituted by the
Bank against Dear to collect a deficiency on a note after repossession and sale
of the collateral for the note. In March, 1995, Dear filed a counterclaim
against the Bank. The counterclaim alleges that the Bank was grossly
negligent, alleges that the Bank had a fiduciary duty and a duty to deal fairly
and in good faith with Dear, alleges a claim for failure to advise that a
deficiency would be due after the foreclosure of Dear's automobile, and alleges
fraud in that the Bank allegedly placed collateral protection insurance on his
automobile when he allegedly had insurance. Dear seeks attorneys' fees and $1
million in actual damages and $5 million in punitive damages.
3. Dennis and Peggy Lott v. Deposit Guaranty National Bank, Ross & Yerger
and Prudential, Civil Action No. 251-95-581, in the Circuit Court of the First
Judicial District of Hinds County, Mississippi. The plaintiffs in this action,
which was filed on June 28, 1995, allege that the Bank purchased collateral
protection insurance through Ross & Yerger from Prudential, and the debt
incurred as a result of the purchase of the insurance resulted in the
plaintiffs being forced to file bankruptcy. The plaintiffs allege causes of
action for tortious breach of contract, breach of fiduciary duty, fraudulently
and/or deceptively attempting to collect excessive collateral protection
insurance premiums, negligent misrepresentation, negligently attempting to
collect on an excessive or illegal debt, and gross negligence. The plaintiffs
seek $1 million in compensatory damages and $10 million in punitive damages.
The defendants removed the case to the United States District Court for the
Southern District of Mississippi, Civil Action No. 3:95cv533WS, but the Lotts
have moved to remand to state court.
4. Welch v. Deposit Guaranty National Bank, Civil Action No. 95-35, Circuit
Court of the Second Judicial District of Hinds County, Mississippi. In this
action, which was filed on August 29, 1995, the plaintiff sued the Bank and
other unnamed defendants with respect to collateral protection insurance
purchased in connection with the plaintiff's loan from the Bank to finance the
purchase of an automobile. The plaintiff alleges causes of action for breach
of contract, tortious breach of contract, fraud and deceit, breach of fiduciary
duty and negligence. The complaint seeks an unspecified amount in actual and
punitive damages.
<PAGE> 3
5. Jackie Holmes v. Trustmark National Bank, Prudential Property & Casualty
Insur. Co., Ross & Yerger, Ross & Yerger Financial Systems and National
Underwriters of Delaware Inc., Civil Action No. 1:95CV323GR, United States
District Court for the Southern District of Mississippi, Southern Division. On
August 24, 1995, the plaintiff in this case filed a motion to amend its
complaint to add the Bank, along with additional banks, as defendants in this
matter. The plaintiff is attempting to have this matter certified as a class
action. If the Court allows the plaintiff to amend the complaint, it will
allege that the Bank is liable in connection with certain collateral protection
insurance. Specifically, if allowed to amend, the complaint will allege causes
of action for violations of the Bank Tying Act, mail fraud, breach of the duty
of good faith and fair dealing, breach of the duty of trust and confidence,
violating fiduciary duties, violating public policy, violating the Civil Rights
Act of 1991, violating the Federal Consumer Credit Act, violating the Truth in
Lending Act, violating the Racketeer Influenced and Corrupt Organizations Act,
violating Fair Debt Collection Act, and violation of usury laws. If allowed to
amend, the plaintiff will seek an unspecified amount of compensatory and
punitive damages, along with attorneys' fees and prejudgement interest. On
September 18, 1995, the Court denied the motion to amend.
While the ultimate outcome of these lawsuits cannot be predicted with
certainty, management believes, based on the advice of counsel, that the
ultimate resolution of these matters will not have a material effect on the
Company's consolidated financial condition.
<PAGE> 4
SIGNATURES
Pursuant to the requirement 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.
DEPOSIT GUARANTY CORP.
Date: September 26, 1995 BY: /s/Arlen L. McDonald
------------------------------
Arlen L. McDonald
Principal Financial Officer
