Resolution Trust Corp. v. Liebert

ORDER ON MOTION FOR RECONSIDERATION

TAYLOR, District Judge.

Rejecting the majority trend of District Court authority, the court holds that, for purposes of FIRREA, the federal “no duty” rule does not survive the Supreme Court’s O’Melveny decision, and does not apply to post-FIRREA suits. The court also holds that, despite California’s rule against transfer of punitive damages claims, the RTC succeeds to the punitive damages claim of a bank it takes over.

I. BACKGROUND

The RTC brought this action based on the alleged negligence, gross negligence, and breach of fiduciary duty of Allan Liebert, a…