Federal Deposit Insurance Corp v. Safeco Insurance Co of America

MEMORANDUM

Safeco appeals the district court’s denial of its motion for a new trial. The jury found that Safeco had breached surety and servicing obligations into which it had entered, and that Safeco had not been fraudulently induced into issuing surety bonds and signing the Sales and Services Agreements (“SSAs”). Safeco argues it was entitled to a new trial because the district court misstated agency law by instructing the jury that knowledge possessed by Safeco’s agent could be imputed to Safeco, and because the district court incorrectly applied Nevada law to Safeco’s fraudulent inducement defense. We have jurisdiction under 28 U.S.C. § 1291 , and we AFFIRM.

1. FDIC stipulated before trial that Safeco was entitled to raise a fraudulent inducement defense. Therefore, FDIC may not argue that Safeco is statutorily barred from attempting to make a fraudulent inducement defense. See Am. Title Ins. Co. v. Lacelaw Corp., 861 F.2d 224, 226 (9th Cir.1988).

2. We review de novo jury instructions that are challenged as a misstatement of law. Duran v. City of Maywood, 221 F.3d 1127, 1130 (9th Cir.2000) (per curiam). The district court did not err by instructing the jury that any…