Equilease Corporation v. Smith International, Inc.

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 reserve judgment on the question whether in Louisiana negligent ignorance can substitute for actual knowledge in a suit based on the…