Women's Federal Savings and Loan Association v. Nevada National Bank

NELSON, Circuit Judge:

Women’s Federal Savings and Loan Association (WOFED) brought this diversity action against Nevada National Bank (NNB), its co-lender, alleging breach of contract and breach of fiduciary duty, and seeking rescission and disgorgement. The district court found that NNB had breached a number of its contractual and fiduciary duties, but concluded that WOFED had failed to show that it had been damaged by those breaches. 1 We conclude that WOFED should not be compelled to stay in this relationship after its fiduciary has proven itself untrustworthy. We therefore reverse.

BACKGROU…