Federal Deposit Insurance v. Lewis

PATRICK E. HIGGINBOTHAM, Circuit Judge:

The FDIC in this case pursues assets of a terminated trust now in the hands of trust beneficiaries. We hold that under Louisiana law the FDIC must show the inadequacy of its remedies at law before pursuing its equitable claim of unjustified enrichment against trust beneficiaries. It has not done so. We reverse the summary judgment granted FDIC and remand for further proceedings.

I

In 1962, Ida Watson Lewis created four trusts for the benefit of her grandchildren Arthur C. Lewis III, Alexis Voorhies Lewis, Patricia Ann Lewis Williams, and Marguerite Brown…