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F.D.I.C. v. JACKSON

Nos. 96-16157, 96-16465.

133 F.3d 694 (1998)

FEDERAL DEPOSIT INSURANCE CORPORATION, Plaintiff-Appellant-Cross-Appellee, v. Richard A. JACKSON, Wanda A. Jackson, Harry J. Cavanagh, Geri Cavanagh, Clifton B. Cox, Helen Cox, Joseph A. Dupont, Marilyn Dupont, James D. Fox, Geneva E. Fox, Louis S. Grubb, Evelyn F. Grubb, William M. Kipp, Gayle Kipp, Clyde B. Smith, Peggy J. Smith and John B. Stiteler, Defendants-Appellees-Cross-Appellants.

United States Court of Appeals, Ninth Circuit.

Decided January 5, 1998.

Attorney(s) appearing for the Case

Ann S. DuRoss, Robert D. McGillicuddy, Michelle Kosse, Kathleen V. Gunning, Karen Caplan (argued), Federal Deposit Insurance Corporation, Washington, D.C., and Marc Kalish, Kalish, Forrester & Torres, Phoenix, Arizona, for appellants.

Lonnie J. Williams (argued), Martha E. Gibbs, Brian J. Foster, Snell & Wilmer, Phoenix, Arizona, for appellees Harry and Geri Cavanagh.

Bart J. Patterson, Daughton & Patterson, Phoenix, Arizona, for appellees Richard and Wanda Jackson.

Hubert W. Green, Michael L. McReynolds, Green, McReynolds & Harkins, San Antonio, Texas, for appellees Clyde and Peggy Smith.

Daniel Cracchiolo, David M. Villadolid, Burch & Cracchiolo, Phoenix, Arizona, for appellees Clifton and Helen Cox, Louis and Evelyn Grubb, and John Stiteler.

David A. Damore, Vogel & Damore, Scottsdale, Arizona, for appellee James Fox.

Joseph A. Schenk, Hebert, Schenk & Johnsen, Phoenix, Arizona, and Daniel Cracchiolo, David M. Villadolid, Burch & Cracchiolo, Phoenix, Arizona, for appellees and cross-appellants Joseph and Marilyn Dupont.

Before: FLETCHER and REINHARDT, Circuit Judges, and WARDLAW, District Judge.

WARDLAW, District Judge:

The Federal Deposit Insurance Corporation ("FDIC") appeals adverse rulings in its actions asserting breach of fiduciary duty, negligence, and gross negligence against the directors of a failed Arizona bank, Century Bank ("Century" or the "Bank"), as well as spousal liability. It is the culmination of a sorry saga of alleged mismanagement by defendants, members of the Board of Directors of Century, a state-chartered, federally insured banking...

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