9th Circuit Reverses Loan Servicing Suit Against Stearns Bank

SAN FRANCISCO - The Ninth Circuit U.S. Court of Appeals on Jan. 8 reversed a federal jury's finding that Stearns Bank N.A., as the servicer of a failed bank's loan, breached its contract, ruling that an incorrect jury instruction "likely caused the jury to assign liability to Stearns for the damage caused by the FDIC $(Federal Deposit Insurance Corp.$)" (Citrus El Dorado LLC v. Stearns Bank, et al., No. 11-57123, 9th Cir.; 2014 U.S. App. LEXIS 344).

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