EQUILEASE CORP. v. SMITH INTERN., INC.

No. 76-3732.

588 F.2d 919 (1979)

EQUILEASE CORPORATION, Plaintiff-Appellant, v. SMITH INTERNATIONAL, INC., et al., Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

January 29, 1979.


Attorney(s) appearing for the Case

Jacob J. Meyer, Louis J. Dutrey, New Orleans, La., for plaintiff-appellant.

Gordon F. Wilson, Jr., Douglas S. Draper, New Orleans, La., for Smith Intern., Inc.

Before WISDOM, GOLDBERG and RUBIN, Circuit Judges.


WISDOM, Circuit Judge:

This diversity case raises a slippery question of Louisiana law concerning application of the principle of "negligent ignorance" to one who contributes to the success of a fraudulent scheme without actual knowledge of the fraud. The district court held that Louisiana law does not countenance imposition of liability on a party who had no actual knowledge of fraud but that, in any event, the defendant was not negligently ignorant. Although we...

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