Federal Deposit Insurance Corporation, as Receiver for Carson River Community Bank v. Jacobs
Filing
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ORDER DENYING # 137 Motion to Strike. Signed by Judge Robert C. Jones on 12/16/2014. (Copies have been distributed pursuant to the NEF - DRM)
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UNITED STATES DISTRICT COURT
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DISTRICT OF NEVADA
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FEDERAL DEPOSIT INSURANCE CORP.,
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Plaintiff,
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v.
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JAMES MICHAEL JACOBS et al.,
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Defendants.
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_______________________________________ )
3:13-cv-00084-RCJ-VPC
ORDER
This case arises out of the failure of a bank due to alleged malfeasance by its directors and
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officers in approving bad loans. The Court previously granted Plaintiff leave to file the Second
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Amended Complaint (“SAC”). While the motion for leave to file the SAC was pending, Defendant
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James Jacobs asked the Court to strike paragraph 15 of the SAC, because in addition to allegations
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concerning a loan at issue, it contains allegations concerning three loans not at issue. The Court will
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not strike those allegations. Although recovery is only sought based on losses incurred due to one of
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the four loans, the allegations are not themselves scandalous or impertinent. Whether evidence
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related to the three loans for which recovery is not directly sought in the SAC is admissible is a
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question to be determined via a motion in limine or at trial. Jacobs has also asked the Court to strike
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paragraph 17 of the SAC because it contains inadmissable hearsay concerning the state of the
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Nevada economy in 2006 in the form of quotations from newspaper articles. The Court will not
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strike the allegations. Even assuming those articles are inadmissible, allegations in a complaint need
not be based on admissible evidence but need only be made in good faith. There is no indication that
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the allegation that the cited newspaper articles in fact existed is not made in good faith. Summary
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judgment and trial are the points at which a plaintiff must prove his case with admissible evidence.
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CONCLUSION
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IT IS HEREBY ORDERED that the Motion to Strike (ECF No. 137) is DENIED.
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IT IS SO ORDERED.
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Dated this 16th day of December, 2014.
Dated this 2nd day of December, 2014.
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_________________________________
ROBERT C. JONES
United States District Judge
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