722 F.3d 50
1st Cir.2013Background
- Estrada-Rivera signed a $700,000 line of credit with R-G Premier Bank of Puerto Rico for EER-IPR.
- The Bank was later taken over by the FDIC as receiver and the action was removed to federal court.
- Appellants alleged the Bank breached a financing agreement with ECC and with appellants themselves, causing the default and seeking at least $50 million in damages.
- The district court granted summary judgment for the FDIC on the collection action, finding the debt due and payable and no written condition tying repayment to ECC financing.
- The district court dismissed the counterclaim for lack of subject-matter jurisdiction under 12 U.S.C. § 1821(d)(6), (d)(13)(D) after FDIC disallowed the claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the FDIC collection judgment was proper despite alleged Bank repudiation | Estrada-Rivera argues Bank’s breach should excuse payment. | FDIC contends no written condition creates a defense under § 1823(e)(1). | Summary judgment proper; no written condition evidenced. |
| Whether the counterclaim was properly dismissed for lack of jurisdiction | Appellants claim proper administrative procedures were met and claims should proceed. | FDIC no-value determination and prudential mootness preclude relief. | District court's dismissal affirmed; no redressable claim. |
Key Cases Cited
- Beal Bank, SSB v. Pittorino, 177 F.3d 65 (1st Cir. 1999) (1823(e) prevents unwritten agreements as defense to FDIC assets)
- LeBlanc v. FDIC, 85 F.3d 821 (1st Cir. 1996) (D'Oench doctrine applied; prevents unrecorded understandings as defenses)
- D'Oench, Duhme & Co. v. FDIC, 315 U.S. 447 (S. Ct. 1942) (establishing D'Oench doctrine)
- McCullough v. FDIC, 987 F.2d 870 (1st Cir. 1993) (1823(e) described as statutory partner of D'Oench)
- Acosta-Ramírez v. Banco Popular de P.R., 712 F.3d 14 (1st Cir. 2013) (administrative claims process requirements)
- FDIC v. Kooyomjian, 220 F.3d 10 (1st Cir. 2000) (no-value determinations preclude relief)
