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722 F.3d 50
1st Cir.
2013
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Background

  • 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)
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Case Details

Case Name: FDIC, as receiver for R-G Prem v. Estrada-Rivera
Court Name: Court of Appeals for the First Circuit
Date Published: Jul 3, 2013
Citations: 722 F.3d 50; 2013 WL 3336855; 11-2113, 11-2433
Docket Number: 11-2113, 11-2433
Court Abbreviation: 1st Cir.
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    FDIC, as receiver for R-G Prem v. Estrada-Rivera, 722 F.3d 50