Summerhaze Co., L.C. v. Fed. Deposit Ins. Corp.

Plaintiffs filed a complaint against America West Bank, L.C. (the Bank) alleging, among other claims, improper acceptance of unauthorized signatures. The Bank tendered defense of the claim to its insurer under the terms of a financial institution bond. The Utah Department of Financial Institutions subsequently closed the Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The FDIC mailed and published notices indicating that all claims against the Bank had to be submitted to the FDIC for administrative review. After the administrative claims review deadline, Plaintiff filed a proof of claim with the FDIC, which the FDIC disallowed because it was untimely filed. Plaintiffs then filed a notice of intent to prosecute. The district court granted the FDIC’s motion to dismiss, concluding that Plaintiffs failed to exhaust the administrative claims review process made available to them by the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). The Supreme Court affirmed, holding (1) Plaintiffs’ failure to comply with the administrative exhaustion requirements of FIRREA deprived the district court of subject matter jurisdiction; and (2) Plaintiffs’ failure to avail themselves of the available claims review process did not amount to a violation of due process. View "Summerhaze Co., L.C. v. Fed. Deposit Ins. Corp." on Justia Law