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Note: To facilitate the purchase of a geothermal power plant from the State of California, Lenders, J. Edgar Monroe and Robert J. Monroe, agreed to loan purchasers US$1,500,000, and arranged for issuance of a US$5,000,000 standby LC issued by Whitney National Bank, New Orleans, which was used to secure a bond for the purchase of the power plant. The standby was in favor of Bond Issuer, Greenwich Insurance Company.

Bottle Rock Power Corporation, Jones, and Winemiller were the borrowers. The standby for US$5,000,000 was evidenced by a promissory note. During the next year, entities allegedly owned by two of the borrowers, Jones and Winemiller, Monterey Farms, Inc. and A&B Farms, Inc., acquired the stock of the third borrower, Bottle Rock Power Corporation, and agreed with the lender to cause Bond Issuer to have the standby released so that Lenders would no longer be liable for reimbursement under the letter of credit. They also agreed to pay Lenders for transaction costs related to the standby issuance and to pay Lenders US$1,000,000 as compensation for providing the standby.

Subsequently, another entity, Bottle Rock Holdings Corp., acquired the Bottle Rock Powerstock. Lenders signed an agreement with Bottle Rock Holdings Corp. and IPIC International to extend the standby for thirty days in exchange for obtaining there lease of the standby and payment of Lender's out of pocket expenses incurred as a result of the extension.

The standby was allegedly never released. Lender sued Monterey Farms and A&B Farms for breach of the agreement to release the standby and to pay Lenders' transaction costs. Lender also sued Bottle Rock Holdings Corp. and IPIC International for breach of the agreement to release the standby. Finally Lender sued all of the above parties for unjust enrichment.

The U.S. District Court for the Eastern District of Louisiana, Fallon, J., in a pretrial order, denied a myriad of motions, including motions to Review of and Objections to Magistrate Judge's Order and Reasons Granting in Part and Denying in Part Plaintiffs' Motion to Compel, Quash Service of Process, and Dismiss for Lack of Personal Jurisdiction, Insufficiency of Service of Process and Improper Venue or Alternatively to Transfer to Proper or More Convenient Venue.

In denying the motion to dismiss for improper venue by Borrowers Jones, Winemiller, Monterey Farms, Inc., and A&B Farms, Inc. the court stated that "[b]oth the promissory note and the letter of credit were issued by the Whitney National Bank in New Orleans. Therefore, [Borrowers] each allegedly owed a performance that had to be accomplished through contact with Louisiana. Therefore ... venue is proper in this District."

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