104 So. 3d 1208
Fla. Dist. Ct. App.2012Background
- Appellants Conlen, Gates, and Wavra challenge foreclosure judgments obtained by NCUA in consolidated appeals.
- NCUA was the plaintiff in the underlying foreclosure actions and managed Huron River Area Credit Union assets after Huron’s involuntary liquidation.
- Appellants participated in a Florida real estate investment program called “Millionaire University,” financing purchases with notes and mortgages assigned to Huron.
- The notes/mortgages were ultimately foreclosed to recover on construction and purchase loans.
- Appellants alleged fraud and that the notes/mortgages were not valid assets of Huron, arguing bylaws barred the assignments.
- The trial court granted summary judgment under the D’Oench doctrine (12 U.S.C. § 1823(e)) and rejected attempted amendments to defenses; the appeals were consolidated and affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| D’Oench doctrine applicability to defeat defenses | NCUA asserts defenses are barred by D’Oench | Appellants argue fraud and nonconforming loans avoid D’Oench | D’Oench bars the defenses and supports summary judgment |
| Validity of notes/mortgages as Huron assets despite bylaws | Notes/mortgages are enforceable assets despite nonconforming loans | Bylaws void the transfers; assets invalid | Notes/mortgages remain enforceable assets under D’Oench (bylaws not private action grounds) |
Key Cases Cited
- Langley v. Fed. Deposit Ins. Corp., 484 U.S. 86 (U.S. Supreme Court 1987) (fraud in the inducement not defeating D’Oench core)
- Glen Johnson, Inc. v. Resolution Trust Corp., 598 So.2d 81 (Fla. 2d DCA 1990) (D’Oenche doctrine shields FDIC despite fraud claims)
- OPS Shopping Ctr., Inc. v. Fed. Deposit Ins. Corp., 992 F.2d 306 (11th Cir. 1993) (D’Oenche applies to nonconforming loans)