Morris Herring, Raymond Herring, James N. Corbett, Luis Valenzuela, Armando Alfaro, and Sherman Montgomery v. Federal Deposit Insurance Corporation

ORDER

The opinion filed on December 26, 1995, 72 F.3d 762 (9th Cir.1995), is amended, and the amended opinion is filed in its stead.

The amended opinion was circulated to all judges of this court on March 26, 1996. The full court has been advised of the suggestion for rehearing en bane and no active judge has requested a vote on whether to rehear the matter en banc. Fed. R.App. P. 35.

The petition for rehearing is denied and the suggestion for rehearing en banc is rejected.

OPINION

Appellants Morris Herring et al. (“the shareholders”) appeal the summary judgment in favor of the Federal Deposit Insurance Corporation (“FDIC”) in their independent action to set aside a state-court judgment for fraud on the court. We affirm.

I. Factual and Procedural Background

In September 1981, the Arizona Superintendent of Banks placed Southwestern Bank (Southwestern) in receivership. On May 1, 1990, the FDIC as court-appointed receiver petitioned the Arizona Superior Court to enter an order approving payment of a final liquidating dividend, payment of interest on claims, sale of any newly discovered assets, disposal of Southwestern’s books and records, and termination of the…