
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, May 4, 1995                   TAG: 9505040125
SECTION: BUSINESS                    PAGE: B-6   EDITION: METRO 
SOURCE: Associated Press
DATELINE: DANVILLE                                LENGTH: Short

BANK SEEKS DISMISSAL OF LAWSUIT

American National Bank & Trust Co. asked a federal judge Wednesday to dismiss a lawsuit filed by employees of the Danville Register & Bee, which it claims would force the bank to sell the newspaper to the employees for less than it's worth.

U.S. District Judge Jackson Kiser did not immediately rule after the hour-long hearing, telling both sides, ``I'll put you on my list of things to do.''

Employees filed the lawsuit in March, accusing the Danville bank of breaching its contract from an earlier tentative agreement to sell the newspaper to employees under an employee stock ownership plan.

A central argument in the case involves the bank's role as executor of the late Stuart James Grant's will and subsequent charitable trust, and its responsibilities to the charities and the newspaper.

The bank first agreed to sell the newspaper to employees at a price determined by an appraisal, said William Rakes, attorney for the employees. Later, the bank terminated the agreement, saying it wanted to seek the highest responsible bidder for the newspaper.

The lawsuit seeks the original deal, which the bank's lawyers argued was a maneuver to sell the newspaper stock to employees below fair market value.

``The bank has a duty to maximize the return to the major beneficiaries in Mrs. Grant's will. Sellers do not look out for buyers' interests,'' said bank attorney Ed Fuhr.

Rakes argued that instructions with Grant's will made it clear she wanted the newspaper sold to employees. But Kiser said those papers imposed no legal duty on the bank.

by CNB