.... Among Other Claims.
In Federal Deposit Insurance Corp. v. Tarkanian, Download FDIC v. Tarkanian (S.D. Cal. Case No. 10cv980, Order Filed October 5, 2010) PUBLIC ACCESS, also published as 2010 WL 3932074 *1-*2 (S.D. Cal. October 5, 2010)(Westlaw subscription required to access Westlaw), the FDIC sued various Guarantors who allegedly owed duties to La Jolla Bank, which was closed and placed in receivership. The FDIC was appointed as Receiver of La Jolla Bank and in that capacity sued the Defendants.
The Defendants filed a Counterclaim against La Jolla Bank. The Claims they alleged were all on account of business activities between the Bank and one Dyson, "an owner of various 'real estate entities'". Id. at *2. They set out five (5) Claims in their Counterclaim against La Jolla Bank, in pertinent part:
(1) fraudulent concealment; (2) negligence; (3) civil conspiracy; (4) breach of the covenant of good faith and fair dealing; and (5) aiding and abetting deceit.
Id. at *4. In each of the five Counts of their Counterclaim, the Defendants alleged that La Jolla Bank failed to disclose certain facts which were material to the Defendants' business decisions, and outlined at length "special circumstances" under which the Bank had a duty to disclose those facts to the Defendants. Id. at *6-*7.
The District Court agreed that the "special circumstances" alleged by the Defendants could give rise to a duty on the part of La Jolla Bank under California Law to disclose material facts of the kind allegedly not disclosed by the Bank to the Defendants. The Court thus denied FDIC's Motion to Dismiss on that ground. Id. at *8.
Even defunct Banks can be held accountable for alleged breach of preexisting Duties of Good Faith and Fair Dealing.
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