California Dividend Statutes Preempt FDIC Negligence, Duty Claims, Court Says

California statutes that govern corporate dividends preempt certain claims by the Federal Deposit Insurance Corporation against former bank directors, a federal judge in California rules July 8 (Fed. Dep. Ins. Corp. v. Ching, 2014 BL 188747).

In the ruling, Judge Kimberly J. Mueller of the U.S. District Court for the Eastern District of California granted a motion for summary judgment by former directors of Butte Community Bank, striking FDIC state-law claims of simple negligence and breach of fiduciary duty in connection with a cash-raising plan.

She denied the motion with respect to claims of gross negligence under ...