1500 Range Way Partners, LLC v. Jpmorgan Chase Bank, National Ass'n
800 F. Supp. 2d 716
D.S.C.2011Background
- Range Way leased real property from WaMu circa 2007; WaMu later failed and FDIC became receiver under FIRREA.
- JPMorgan agreed to assume WaMu assets and liabilities under the PAA; lease classification at issue allegedly falls under Bank Premises.
- FDIC repudiated the Range Way lease on March 23, 2009; letter warned of 90-day bar to claim.
- Range Way filed suit June 4, 2009 against JPMorgan; FDIC was granted intervention July 6, 2010.
- FDIC moved to dismiss under Rules 12(b)(1) and 12(b)(6) asserting lack of standing and need to exhaust FIRREA administrative remedies.
- Court granted FDIC’s motion to dismiss, holding Range Way lacked standing and failed to exhaust FIRREA remedies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing to sue against JPMorgan | Range Way argues privity via Bank Premises lease under PAA. | Lease is Bank Premises; JPMorgan retained option to assume; Range Way lacks privity. | Range Way lacks standing; dismissal appropriate. |
| Exhaustion of FIRREA administrative remedies | Range Way should be able to pursue breach against asset holder without FIRREA process. | Administrative claims process mandatory for assets under FDIC receivership. | Dismissal for failure to exhaust FIRREA remedies. |
| Scope of Bank Premises under PAA | Lease not Bank Premises because storage facility not linked to banking houses. | Bank Premises includes all records storage facilities incident to or related to banking houses, broadly construed. | Bank Premises includes the Range Way lease; JPMorgan had option to assume. |
| PAA third-party rights | Range Way is a third-party beneficiary of the PAA. | PAA disclaims third-party rights; no intention to create them. | No third-party beneficiary status; outcome unaffected. |
Key Cases Cited
- Freeman v. F.D.I.C., 56 F.3d 1394 (D.C. Cir. 1995) (mandatory FIRREA administrative exhaustion for claims against failed banks)
- Brady Dev. Co. v. Resolution Trust Corp., 14 F.3d 998 (4th Cir. 1994) (exhaustion of FIRREA remedies required)
- McNair v. Lend Lease Trucks, Inc., 95 F.3d 325 (4th Cir. 1996) (standard for evaluating complaint under Rule 12(b)(6))
- Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308 (U.S. 2007) (plausibility standard for facially plausible claims)
- Twombly v. Bell Atl. Corp., 550 U.S. 544 (U.S. 2007) (pleading requires factual content showing plausible entitlement to relief)
- Ashcroft v. Iqbal, 556 U.S. 662 (U.S. 2009) (twice-referenced plausibility standard for complaints)