Jul 23, 2019

When Can You Apportion Liability For A Group Action?

Liability on Loan

How do you apportion liability among parties equally responsible for a decision? Short answer: Sometimes, you don’t. That was the answer reached by the United States Court of Appeals for the Eleventh Circuit in Federal Deposit Insurance Corporation v. Loudermilk, Case No. 16-17315 (decided July 22, 2019). The case involved the failed Buckhead Community Bank. After the bank failed, the FDIC, as receiver, sought to hold the directors who served on the loan approval committee liable for allegedly negligently having approved certain risky loans. Eventually, a jury held the committee members liable for approving four loans and awarded the FDIC… Read more