United States Ninth Circuit

In a case arising from a "subprime" mortgage lender's bankruptcy and liquidation due to fraudulent lending practices, a district court's judgment is affirmed in part as to its holdings imposing liability on defendants for aiding and abetting a class-wide fraud perpetrated by bankruptcy debtor, and rejecting borrowers- claims for relief in the form of equitable and punitive remedies, as well as bankruptcy trustee-s claims for equitable relief under the Bankruptcy Code. A damages verdict is vacated and remanded for further proceedings on the proper calculation of -out-of-pocket- damages caused by bankruptcy debtor-s fraudulent lending scheme, to be proportionately attributed to defendants pursuant to the terms of a certain order.

Appellate Information

• Argued 10/19/2005
• Decided 12/08/2006
• Published 12/08/2006

Judges

• CLIFTON, Circuit Judge:, Before: HARRY PREGERSON, RICHARD R. CLIFTON, and JAY S. BYBEE, Circuit Judges.

Court

• United States Ninth Circuit

Counsel

• For Appellant:
  
• Larry W. Gabriel (argued), Pachulski, Stang, Ziehl, Young, Jones & Weintraub P.C., Los Angeles, CA, for the appellant.


• For Appellees:
  
• Richard F. Scruggs (argued), Sidney A. Backstrom, The Scruggs Law Firm, P.A. Oxford, MS;  Elizabeth J. Cabraser (argued), Hector D. Geribon, Lieff, Cabraser, Heimann & Bernstein, LLP, San Francisco, CA;  Kim E. Levy, Lili R. Sabo, Milberg Weiss Bershad & Schulman LLP, New York, NY, for the plaintiffs-appellees-cross-appellants., Helen L. Duncan (argued), Robert W. Fischer, Jr., Joseph H. Park, Dinh Ha, Fulbright & Jaworski L.L.P., Los Angeles, CA;  Marcy Hogan Greer, Fulbright & Jaworski L.L.P., Austin, TX, for the defendants-appellants-cross-appellees.