Federal Deposit Insurance v. Williams
60 F. Supp. 3d 1209
D. Utah2014Background
- Centennial Bank failed in 2010; FDIC-R sues seven former officers/directors for allegedly approving sixteen high-risk loans.
- Lending focused on acquisition, development, construction, and commercial real estate; loans approved between 2006-2008.
- FDIC-R asserts sixteen loans violated policy/prudent lending, causing at least $11.2 million in losses.
- Tolling agreements 2013-2013 extended limitations and prevented statute-bar defenses; extensions updated through Sept. 30, 2013.
- FDIC-R filed initial complaint Sept. 27, 2013, after mediation and extensions; Defendants moved to dismiss the FAC as time-barred or under tolling arguments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FIRREA extents the statute of limitations, making FDIC-R claims timely | FDIC-R argues Extender Statute tolls to Sept. 30, 2013 | Williams argues accrual/time-bar issues per state/federal law | Not time-barred; tolling permitted under Extender Statute |
| Whether accrual is governed by Utah law or federal common law | Utah law governs accrual under Erie/OD rules | Federal common law controls accrual per some interpretations | Utah-law accrual governs; no federal-conflict precludes Utah rule |
| Whether tolling agreements were valid under FIRREA and the Extender Statute | Tolling agreements are permissible; extend filing window | Not permitted; contractual tolling defeats Extender Statute | Tolling agreements valid; filings timely under Extender Statute |
| Whether the FAC plausibly states claims of gross negligence and breach of fiduciary duty | FAC contains plausible facts; Utah allows breach based on gross negligence | Claims insufficient or duplicative of gross negligence | FAC plausibly states both claims; sufficient at pleading stage |
Key Cases Cited
- FDIC v. Regier Carr & Monroe, 996 F.2d 222 (10th Cir.1993) (extender statute accrual and receivership timing guidance)
- O’Melveny & Myers v. FDIC, 512 U.S. 79 (1994) (no general federal common law; agency steps into state-law framework unless FIRREA dictates otherwise)
- Atherton v. FDIC, 519 U.S. 213 (1997) (reaffirmed Erie-like approach; federal common law limited to FIRREA contexts)
- Nomura Home Equity Loan, Inc. v. NCUA, 727 F.3d 1246 (10th Cir.2013) (federal actions tolling context in FIRREA actions clarified)
- NCUA v. Credit Suisse Securities (USA) LLC, 939 F.Supp.2d 1113 (D.Kan.2013) (debated tolling under Extender Statute; contrasting view supporting non-tolling)