O'MELVENY & MYERS, PETITIONER v. FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER FOR AMERICAN DIVERSIFIED SAVINGS BANK ET AL., 512 U.S. 79

Summary

The Court reversed a judgment reversing a grant of summary judgment in favor of petitioner law firm in respondent Federal Deposit Insurance Corporation's suit alleging that petitioner was professionally negligent in its handling of real estate transactions for a failed savings and loan institution (S&L). Respondent brought the suit against petitioner when it stepped in as receiver for the failed S&L. At issue was whether, in a suit by respondent as receiver of a federally insured banking institution, a federal law or a state-law rule of decision governed the tort liability of attorneys who provided services to the institution. The Court concluded that a state law rule of decision governed whether the knowledge of corporate officers acting against the corporation's interest would be imputed to the corporation. The Court held that there was no federal general common law, and the remote possibility that corporations might go into federal receivership was no conceivable basis for adopting ...