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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Date of Report (Date of earliest event reported): July 3, 1997
Commission File No. 0-22750
ROYALE ENERGY, INC.
CALIFORNIA 33-0224120
(State or other (I.R.S. Employer
jurisdiction of identification No.)
incorporation or
organization
7676 HAZARD CENTER DRIVE, SUITE 1500
SAN DIEGO, CA 92108
(Address of principal executive offices)
Issuer's telephone number: 619-297-8505
Item 5. Other Events
On July 3, 1997, a civil judgment was entered against Royale Energy,
Inc. (the "Company"), for a total of $321,735.43 by the U.S. District
Court for the Southern District of California, following a jury trial and
verdict in Stanley L. Worthington v. Royale Energy, Inc., et al., No.
96c644CGA. In addition, the Court awarded damages against the Company's
chairman, Harry E. Hosmer, and president, Donald H. Hosmer, in amounts of
$183,336.00 each. The judgement includes an award of court costs and post
judgement interest.
The court's award was based on jury findings of breach of contract and
common law fraud concerning the plaintiff's 1990 and 1991 investment in wells
drilled by the Company in Hood County Texas. The evidence presented at trial
indicated that, among other things, a former salesman had made representations
to the plaintiff which the Company did not authorize. Prior to trial,
allegations made by the plaintiff concerning violations of federal and state
securities laws had been dismissed by the Court. Prior to entry of the
verdict, the court also dismissed the complaint against
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the other co-defendants, two independent directors and one former officer of
the Company.
The Company strongly disagrees with the verdict and has announced its
intent to move for a new trial and to appeal the judgement.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
ROYALE ENERGY INC,
DATE: OCTOBER 28, 1996 /S/ DONALD H. HOSMER
DONALD H. HOSMER, PRESIDENT AND
CHIEF EXECUTIVE OFFICER
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