Case: 12-15878 Date Filed: 10/24/2014 Page: 1 of 4
[PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT
___________________________
No. 12-15878
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Docket No. 1:11-cv-00111-SCJ
FEDERAL DEPOSIT INSURANCE CORPORATION,
as receiver for Integrity Bank of Alpharetta, Georgia,
Plaintiff-Appellant,
versus
STEVEN M. SKOW,
ALAN K. ARNOLD, et al.,
Defendants-Appellees.
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Appeal from the United States District Court
for the Northern District of Georgia
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(October 24, 2014)
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Before MARCUS and EDMONDSON, Circuit Judges, and VINSON, * District
Judge.
PER CURIAM:
In this interlocutory appeal, the Federal Deposit Insurance Corporation
(“FDIC”), as receiver for Integrity Bank (“Bank”), challenged the district court’s
dismissal of its claims against the Bank’s directors and corporate officers for
ordinary negligence and for breach of fiduciary duty based on ordinary
negligence. 1 The parties disputed whether, under Georgia law, bank directors and
officers could be subject to claims for ordinary negligence.
Having concluded that the answer to that question was “debatable under
Georgia law,” we certified these two questions to the Supreme Court of Georgia:
(1) Does a bank director or officer violate the standard of care established by
O.C.G.A. § 7-1-490 when he acts in good faith but fails to act with “ordinary
diligence,” as that term is defined in O.C.G.A. § 51-1-2?
*
Honorable C. Roger Vinson, United States District Judge for the Northern District of Florida,
sitting by designation.
1
The FDIC also challenged the district court’s denial of its motion for partial summary judgment
to strike the defendants’ affirmative defenses. We affirmed -- and affirm today -- the district
court’s ruling on this issue of federal law in our earlier opinion. See Fed. Deposit Ins. Corp. v.
Skow, 741 F.3d 1342, 1347-49 (11th Cir. 2013).
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(2) In a case like this one, applying Georgia’s business judgment rule, can
the bank officer or director defendants be held individually liable if they, in
fact as alleged, are shown to have been ordinarily negligent or to have
breached a fiduciary duty, based on ordinary negligence in performing
professional duties?
Fed. Deposit Ins. Corp. v. Skow, 741 F.3d 1342, 1346-47 (11th Cir. 2013).2
In the light of its recent decision in Fed. Deposit Ins. Corp. v. Loudermilk,
761 S.E.2d 332 (Ga. 2014), the Supreme Court of Georgia now advises us that “[a]
bank director or officer may violate the standard of care established by O.C.G.A. §
7-1-490, even where he acts in good faith, where, with respect to the process by
which he makes decisions, he fails to exercise the diligence, care, and skill of
‘ordinarily prudent men [acting] under similar circumstances in like positions.’”
Fed. Deposit Ins. Corp. v. Skow, 2014 Ga. LEXIS 739, *2 (Ga. 2014). And, “[i]n
a case like this one, the bank officer or director defendants may be held
individually liable if they are shown to have violated the standard of care
established by O.C.G.A. § 7-1-490.” Id. This then is the law of Georgia.
2
The facts for this appeal are set out in our initial opinion. See Skow, 741 F.3d at 1344-45.
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Based on these definitive responses to our certified questions, we vacate the
district court’s orders (1) dismissing the FDIC’s claims for ordinary negligence and
for breach of fiduciary duty based on ordinary negligence and (2) denying the
FDIC’s motion for reconsideration, and remand the case for further proceedings
consistent with this opinion and our earlier opinion in this appeal.
AFFIRMED IN PART, VACATED IN PART and REMANDED.
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