FDIC v. Royal Park No. 14, Ltd., 2 F.3d 637 (5th Cir. 1993) (argued for FDIC) (holding that reliance upon oral representations of a government official was unreasonable as matter of law whether the representation was of fact or law).... [Read more...]
Bank Receivership Law
We have significant trial and appellate experience litigating claims arising from FDIC’s role as the receiver for failed banks and thrifts (banks). When a bank becomes insolvent or is in unsafe-or-unsound condition, it is closed by its state or federal chartering agency and the FDIC is appointed its receiver. As receiver, FDIC steps into the shoes of the bank and liquidates the failed bank’s assets and liabilities under a comprehensive statutory scheme established in the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA). FDIC, as the insurer of deposits, takes action immediately to protect the depositors of the failed bank, typically by transferring their accounts to a healthy bank in a three party contract (P&A Agreement) between FDIC as the insurer of deposits, FDIC as receiver for the failed bank, and the acquiring institution.
Sierra Club, Lone Star Chapter v. FDIC, 992 F.2d 545 (5th Cir. 1993) (argued for FDIC) (reversing judgment against FDIC and holding that an injunction would be vacated and remanded for further consideration where plaintiffs had not shown they were entitled to injunctive relief and where the district court did not enter findings of fact […]... [Read more...]
Peoples Westchester Sav. Bank v. FDIC, 961 F.2d 327 (2d Cir. 1992) (argued for FDIC) (holding that (i) an interest on lawyers account (IOLA) is a general deposit—not a special account—and clients of an attorney with money in an IOLA when a bank fails are entitled to federal deposit insurance only up to the insured […]... [Read more...]
FDIC v. Mmahat, 907 F.2d 546 (5th Cir. 1990) (on brief for United States) (holding that (i) a bank’s general counsel’s debt was non-dischargeable on the basis of fraud or defalcation while acting in a fiduciary capacity, and (ii) a legal malpractice claim by FDIC was tolled under the Louisiana doctrine of adverse domination until […]... [Read more...]