Opinion ID: 8704066
Heading Depth: 3
Heading Rank: 4

Heading: Whether the Tort Counterclaims Fail As a Matter of Law

Text: The final four Counterclaims against BOA sound in tort. The FDIC alleges that BOA breached its duty of care as Colonial’s agent, as well as its fiduciary duties of care and loyalty to Colonial, by pledging the Participated Mortgage Loans as collateral for the Ocala Notes and then selling them to Freddie Mac without first ensuring that Colonial was paid. ’ (See Dkt. No. 25 at ¶¶ 135-137, 140-142, and 145-147.). The FDIC also asserts that BOA breached its duty of care under a common law bailment by encumbering the loans and selling them to Freddie Mac. (Id. at ¶¶ 150-153.). BOA argues that these claims must be dismissed for two reasons: (1) the economic loss doctrine bars the tort claims, and (2) the Custodial Agreement limits or precludes BOA’s tort liability.
“The economic loss rule is a judicially created doctrine that sets forth the circumstances under which a tort action is prohibited if the only damages suffered are economic losses.” Indem. Ins. Co. of N. Am. v. Am. Aviation, Inc., 891 So.2d 532, 536 (Fla.2004). One of the circumstances in which the economic loss doctrine applies is “when the parties are in contractual privity and one party seeks to recover damages in tort for matters arising out of the contract.” Id. The economic loss doctrine “is designed to prevent parties to a contract from circumventing the allocation of losses set forth in the contract by bringing an action for economic loss in tort.” Id. Any recovery in tort “requires proof of facts that are distinct from breach of contract.” Invo Fla., Inc. v. Somerset Venturer, Inc., 751 So.2d 1263, 1265 (Fla. Dist.Ct.App.2000); accord Electronic Sec. Sys. Corp. v. S. Bell Tel. and Tel. Co., 482 So.2d 518, 519 (Fla.Dist.Ct.App.1986). BOA argues that the only loss asserted by the FDIC is the loss of the 4,808 Participated Mortgage Loans, for which Colonial should have been paid a Takeout Amount of $898,873,958. BOA maintains that because Colonial was entitled to this Takeout Amount only by virtue of the written agreements between the parties, the alleged damages fall squarely within the definition of economic losses barred by the economic loss rule. (See Dkt. No. 36 at 38-39.). The FDIC counters that this argument is not ripe for review at this stage in the litigation because BOA has moved to dismiss the FDIC’s breach of contract claims and Federal Rule of Civil Procedure 8(d)(3) expressly permits a party to plead claims in the alternative, even if the claims are inconsistent. (See Dkt. No. 41 at 39.) The Court agrees. At this early stage of the litigation, the Court finds that the tort claims are adequately pled and not barred by the economic loss doctrine. To the extent that discovery or further case development show that the duties allegedly breached by BOA are in fact based on or inextricably intertwined with valid written agreements between Colonial and BOA, the Court will revisit the issue. Bd. of Trs. of the City of Lake Worth Emps.’ Ret. Sys. v. Merrill Lynch Pierce Fenner & Smith, Inc., No. 3:10-cv-845-J-32MCR, 2011 WL 2144658 at  (M.D.Fla. May 31, 2011); see also Scott v. District of Columbia, 101 F.3d 748, 753 (D.C.Cir.1996) (stating that plaintiff can properly plead alternative theories of liability, regardless of whether such theories are inconsistent with one another); Robinson v. District of Columbia, 736 F.Supp.2d 254, 262 (D.D.C. 2010) (“Federal Rule of Civil Procedure 8(d)(3) permits a plaintiff to plead inconsistent claims in support of alternative theories of recovery ... ”).
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.