42 F. Supp. 3d 574
S.D.N.Y.2014Background
- FDIC, as receiver for Colonial Bank, sued under the Securities Act of 1933 for alleged misstatements tied to securities Colonial purchased in 2006–2007.
- Colonial failed and FDIC was appointed receiver on August 14, 2009; FDIC sued on August 10, 2012.
- The 1933 Act contains a one-year limitations period measured from discovery and a separate three-year statute of repose measured from the public offering date.
- FDIC invoked the FIRREA "extender" statute, 12 U.S.C. § 1821(d)(14), arguing it resets accrual and thus lengthens the time the FDIC has to bring claims as receiver.
- Defendants argued the extender statute does not override the 1933 Act’s three-year statute of repose; after the Supreme Court decided CTS Corp. v. Waldburger, defendants moved for judgment on the pleadings.
- The district court held the FIRREA extender statute alters statutes of limitations but does not displace statutes of repose, and therefore dismissed the FDIC’s claims as time-barred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the FIRREA extender statute displaces the 1933 Act’s three-year statute of repose | FDIC: FIRREA’s extender was intended to preserve and extend time for receivers to sue, effectively lengthening both limitations and repose periods so FDIC claims are timely | Defs: Extender governs statutes of limitations (accrual-based), not statutes of repose (measured from defendant’s last act); repose remains a hard outer limit | Court: Extender alters accrual/limitations but does not affect statutes of repose; 1933 Act’s three-year repose bars FDIC’s claims |
Key Cases Cited
- CTS Corp. v. Waldburger, 134 S. Ct. 2175 (2014) (distinguishes statutes of limitations from statutes of repose and holds a federal statute that references "statute of limitations" does not pre-empt state statutes of repose)
- Fed. Hous. Fin. Agency v. UBS Americas, Inc., 712 F.3d 136 (2d Cir. 2013) (addressed a similar extender provision under HERA and reached the opposite result on repose; relied on by parties during briefing)