Opinion ID: 8704066
Heading Depth: 4
Heading Rank: 2

Heading: Whether the Custodial Agreement Limits BOA’s Tort Liability

Text: BOA’s final argument is that the Custodial Agreement precludes tort liability for BOA. (See Dkt. No. 36 at 40.). As discussed supra, BOA contends that the Custodial Agreement expressly limits BOA’s liability to breaches committed through “gross negligence or willful misconduct.” (Id. citing the Custodial Agreement at ¶¶ 10A, 11.). BOA argues that the FDIC seeks to do an “end-run” around this contractual limitation by alleging breaches of noncontractual tort duties, none of which amount to gross negligence or willful misconduct. (Id.). Therefore, BOA argues, the tort claims must be dismissed as a matter of law. BOA’s argument fails for two reasons. First, as discussed in Section IV.D.1., supra, the exculpatory clauses in the Custodial Agreement are simply too ambiguous to effectively limit BOA’s liability. Second, the claims in Counterclaim 13 through Counterclaim 16 relate to the bailment relationship created by the Bailee Letters, not the Custodial Agreement. As discussed in Section IV.D.3.a., supra, the FDIC has plausibly stated that the Bailee Letters created a new agreement between Colonial and BOA that is independent of the Custodial Agreement. Accordingly, BOA’s motion to dismiss Counterclaims 13 through 16 is denied.