Benj. Franklin Savings and Loan

Benj. Franklin S&L's television commercials featured its president, Bob Hazen, in which he hawked toasters and other free gifts to woo new depositors and to pitch other financial products and services. Hazen is credited with inventing the thrift marketing phrase: "Pay Yourself First."

Hazen's father founded the Benj. Franklin in 1925. Although the name on signs and letterhead was "Benj." in promotions and discussions, the full word "Benjamin" was always pronounced.

Between 1982 and 1989 the thrift made a profit in 16 consecutive calendar quarters and became the number one mortgage lender in the Portland metropolitan area. It had strong lending positions in other major areas of the Northwest.

Scandals and FIRREA

In the middle of the S&L crisis of the late 1980s; the officers of several thrifts were accused and later convicted of defrauding investors and depositors. In 1989 Congress passed FIRREA. Critics suggest that FIRREA was a hasty reaction to the frauds and scandals that actually exacerbated the S&L problem, from crisis to a true disaster. Among its controversial provisions, FIRREA retroactively revoked agreements for the long-term amortization of goodwill.

The US Constitution prohibits "Ex Post Facto" laws (making something illegal after it has happened). In 1996, the US Supreme Court found that this clause applied to the retroactive aspects of FIRREA.

Lawsuit

In 1990 shareholders sued the government for breach of contract. They've won in every contest so far.

In 1995, it was ruled that these shareholders had the right to bring suit "shareholder standing".

In 1996, the U.S. Supreme Court ruled in a companion case that the government had breached its contract for long term amortization of goodwill.

In 1997, a judge decided that the government breached its contract with Benj. granting "summary judgment on liability." Summary judgment means no trial was needed.