United States District Court, D. Nevada
FEDERAL DEPOSIT INSURANCE CORPORATION, AS RECEIVER OF SILVER STATE BANK, Plaintiff,
COREY L. JOHNSON, et al., Defendants,
KENT J. DAWSON, District Judge.
Before the Court is Defendant Corey L. Johnson's ("Johnson") Motion for Partial Summary Judgment (#155), to which Defendants Gary A. Gardner ("Gardner") (#157) and Douglas E. French ("French") (#166) joined. The Federal Deposit Insurance Corporation, as Receiver of Silver State Bank, ("FDIC-R") filed a response in opposition (#187). Johnson filed a reply (#204).
Silver State Bank ("SSB") was a financial institution with offices in several states (#121). In 2008, SSB was closed and the FDIC-R was appointed receiver (#121). Afterwards, the FDIC-R filed a Complaint (#1) and an Amended Complaint (#121). The Amended Complaint alleges that Defendants, as SSB's former officers, are personally liable for the damages caused by their gross negligence and breach of fiduciary duties (#121). The Amended Complaint also alleges that Defendants' actions resulted in losses to the Deposit Insurance Fund ("DIF") (#121). Defendants now seek judgment regarding the FDIC-R's standing to recover the losses to the DIF (#155).
II. Legal Standards
A. Summary Judgment
The purpose of summary judgment is to "pierce the pleadings and to assess the proof in order to see whether there is a genuine need for trial." Matsushita Elec. Indus. Co. v. Zenith Radio Corp. , 475 U.S. 574, 587 (1986). Summary judgment may be granted if the pleadings, depositions, affidavits, and other materials in the record show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. See FED. R. CIV. P. 56(c); see also Celotex Corp. v. Catrett , 477 U.S. 317, 322 (1986).
A fact is material if it might affect the outcome of the suit under the governing law. Anderson v. Liberty Lobby, Inc. , 477 U.S. 242, 248 (1986). Uncorroborated and self-serving testimony, without more, will not create a genuine issue of material fact. See Villiarimo v. Aloha Island Air Inc. , 281 F.3d 1054, 1061 (9th Cir. 2002). Conclusory or speculative testimony is also insufficient to raise a genuine issue of fact. Anheuser Busch, Inc. v. Natural Beverage Distribs. , 69 F.3d 337, 345 (9th Cir. 1995).
The moving party bears the initial burden of showing the absence of a genuine issue of material fact. See Celotex , 477 U.S. at 323. Once that burden is met, the nonmoving party then has the burden of setting forth specific facts demonstrating that a genuine issue exists. See Matsushita , 475 U.S. at 587; FED. R. CIV. P. 56(e). If the nonmoving party fails to make a sufficient showing of an essential element for which it bears the burden of proof, the moving party is entitled to summary judgment. See Celotex , 477 U.S. at 322-23.
B. The FDIC
The FDIC was created to promote stability and confidence in the nation's banking system. Bullion Services, Inc. v. Valley State Bank , 50 F.3d 705, 708 (9th Cir. 1995). To achieve these goals, Congress created the FDIC-Corporate ("FDIC-C") and the FDIC-R. Id . Courts have been careful to keep the responsibilities, rights, and liabilities of these two entities legally separate. Id. at 709. The FDIC-C's primary responsibilities are to insure bank deposits and administer the DIF. Id. at 708. The DIF is a pool of assets used to guarantee the safety of federally insured deposits. Id . If an insured financial institution fails, the FDIC-C pays the institution's depositors with DIF funds. Id . The FDIC-R's primary responsibility, on the other hand, is to act as a receiver for an insolvent financial institution. Id.
The issue before the Court is whether the FDIC-R has standing to recover the DIF losses that the FDIC-C paid to SSB's depositors. The Court first examines Defendants' Motion to see if Defendants are ...