Musacchio

Federal Sav. and Loan Ins. Corp. v. Musacchio

Good Law

695 F. Supp. 1053·1988 WL 96095·1988 U.S. Dist. LEXIS 10438

United States District Court, Northern District of CaliforniaJune 17, 1988C-86-6641 RFP, C-87-2604 RFPCalifornia9,484 words

Opinion

Peckham, J.

AMENDED MEMORANDUM AND ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS OR FOR MORE DEFINITE STATEMENT

INTRODUCTION

Defendant Theodore A. Musacchio moves to dismiss the plaintiff’s complaint for failure to state a claim upon which relief can be granted. The defendant argues that the plaintiff Federal Savings and Loan Insurance Corporation (“FSLIC”) has failed to plead essential elements of fraud, that the plaintiff has not pleaded its allegations of fraud with sufficient particularity, that the statute of limitations bars the plaintiff’s claims based on negligence, and that the alleged breach by the defendant of the Federal Home Loan Bank Board (“FHLBB”) supervisory agreement of June 12, 1984 does not create a private right of action for the FSLIC as conservator of Columbus Savings and Loan Association (“Columbus”). For the reasons that follow, this motion is granted in part and denied in part.

BACKGROUND

Defendant Theodore A. Musacchio is a founder and principal shareholder of Columbus. Until the Columbus Board of Directors (“Board”) terminated his employment in late 1985, the defendant served as Columbus’ president. These actions seek to hold the…

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