Acosta-Ramirez v. Banco Popular de Puerto Rico
712 F.3d 14
1st Cir.2013Background
- Former Westernbank employees sue BPPR for severance pay under Law 80 after Westernbank failed and was placed in FDIC receivership.
- FDIC intervenes, asserting no jurisdiction under FIRREA 12 U.S.C. § 1821(d)(13)(D) due to lack of administrative claims or timely review.</n>
- Purchase and Assumption Agreement with BPPR left FDIC liable for severance claims; BPPR did not assume Westernbank severance liabilities, and the P&A indemnified BPPR for non-assumed liabilities.
- Many plaintiffs never filed FIRREA administrative claims with the FDIC; some filed claims but did not timely challenge FDIC’s disallowance in federal court.
- District court granted BPPR summary judgment on merits and FDIC moved to dismiss for lack of jurisdiction; plaintiffs appeal and concede no independent BPPR liability.
- Court agrees FIRREA’s administrative claims process creates a jurisdictional bar and the failure to file or timely review bars jurisdiction; case remanded to dismiss for lack of subject-matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FIRREA's administrative claims process bars jurisdiction. | Plaintiffs | FDIC | Yes, jurisdiction barred |
| Whether failure to file an administrative claim deprives court of jurisdiction. | Plaintiffs | FDIC | Yes, jurisdiction barred |
| Whether failure to name the FDIC as a defendant avoids FIRREA bar. | Plaintiffs | FDIC | No, barred |
| Whether filing claims against the BPPR to circumvent FIRREA is ineffective. | Plaintiffs | FDIC | Yes, barred |
Key Cases Cited
- Simon v. FDIC, 48 F.3d 53 (1st Cir. 1995) (failure to file admin claims triggers jurisdictional bar)
- Marquis v. FDIC, 965 F.2d 1148 (1st Cir. 1992) (jurisdictional scope of FIRREA claims process)
- Village of Oakwood v. State Bank & Trust Co., 539 F.3d 373 (6th Cir. 2008) (jurisdictional effect of FIRREA on third-party defendants)
- Benson v. JPMorgan Chase Bank, N.A., 673 F.3d 1207 (9th Cir. 2012) (cannot evade FIRREA administrative requirements via strategic pleading)
- Tellado v. IndyMac Mortgage Services, 707 F.3d 275 (3d Cir. 2013) (jurisdictional bar where claim against assuming bank arises from failed institution's notice failures)