TCW/DW TERM TRUST 2003
Item 77E Legal Proceedings
Four purported class action lawsuits have been filed
in the Superior Court for the State of California, County
of Orange, against some of the Trust's Trustees and
officers, one of the underwriters, the lead representative
of its underwriters, the Adviser, the Manager and other
defendants - but not against the Trust - by certain
shareholders of the Trust and other trusts for which the
defendants act in similar capacities. These plaintiffs
generally allege violations of state statutory and common
law in connection with the marketing of the Trust to
customers of one of the underwriters. Damages, including
punitive damages, are sought in an unspecified amount. On
or about October 20, 1995, the plaintiffs filed an amended
complaint consolidating these four actions. The defendants
thereafter filed answers and affirmative defenses to the
consolidated amended complaint. The defendants' answers
deny all of the material allegations of the plaintiffs'
complaint. In 1996, the plaintiffs voluntarily dismissed,
without prejudice, their claims against the two defendants
who were independent Trustees of the Trust. In March 1997,
all of the remaining defendants in the litigation filed
motions for judgment on the pleadings, seeking dismissal of
all of the claims asserted against them. The defendants'
motions were fully briefed by all parties and were the
subject of a hearing before the Court on April 18, 1997.
In July 1997, the Court denied the motion for judgment on
the pleadings. In August 1997, plaintiffs filed a motion
for class certification. In their motion, the plaintiffs
requested certification of a "nationwide" class of Term
Trust purchasers. On June 1, 1998, the Court granted in
part and denied in part the plaintiffs' motion for class
certification. The Court ruled that plaintiffs' motion was
"granted as to [a California] statewide class," but was
"denied as to a nationwide class." On October 13, 1998,
three separate class actions alleging similar claims on
behalf of the residents of the states of Florida, New
Jersey and New York were filed in the state courts of those
states. The defendants removed the Florida action to
federal court and the plaintiffs' motion to remand the
action to state court was denied. Motions to dismiss were
filed by the defendants in the Florida action on August 30,
1999, in the New Jersey action on July 26, 1999 and in the
New York action on September 10, 1999. The New Jersey
action was dismissed by the court with prejudice and no
appeal was filed. The motion to dismiss the Florida action
was denied on January 27, 2000. The defendants' motion
opposing class certification in the Florida action was
filed on May 4, 2000. The New York action was dismissed by
the Supreme Court of the State of New York with costs on
April 25, 2000. Certain of the defendants in these suits
have asserted their right to indemnification from the
Trust. The ultimate outcome of these matters is not
presently determinable, and no provision has been made in
the Trust's financial statements for the effect, if any, of
such matters.
Paraleg/NSAR/77e.2003
