Concerted Action Nets Corporate Board
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Concerted Action Nets Corporate Board

The Federal Deposit Insurance Corporation (FDIC) filed a complaint against former directors and officers of a bank for which the FDIC served as a receiver alleging the defendants were negligent and grossly negligent under Georgia law for their approval of ten commercial real-estate loans. Acting on questions certified to it by the Eleventh Circuit Court, the Georgia Supreme Court held that joint and several liability may be imposed on officers and directors “who act in concert insofar as a claim of concerted action involves the narrow and traditional common-law doctrine of concerted action based on a legal theory of mutual agency and thus imputed fault.” However, the Court indicated this was a very narrow exception to the usual rule that damages must apportioned among defendants; and it sent the case back to the Eleventh Circuit to sort out the facts having settled the law.

Federal Deposit Insurance Corporation v Loudermilk