Herron v. Fannie Mae
857 F. Supp. 2d 87
D.D.C.2012Background
- Herron sues Fannie Mae and several employees after being terminated as a consultant in Jan. 2010 for alleging improper actions by Fannie Mae in Treasury home-modifications, waste of public funds, and contract violations.
- Herron pleads four counts: wrongful discharge, civil conspiracy, tortious interference, and a Bivens First Amendment claim against individuals; FHFA moves to dismiss the Bivens claim.
- Court has jurisdiction under 12 U.S.C. § 1723a(a).
- Fannie Mae was created as a private corporation; FHFA conservatorship in 2008 did not convert it into a government actor.
- Conservatorship is temporary in Lebron framework; FHFA’s control is not permanent government control.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Herron’s Bivens claim against FHFA and others survives | Herron argues FHFA/conservatorship makes Fannie Mae a government actor. | FHFA/ defendants contend Fannie Mae remains private; Bivens not applicable. | Bivens claim dismissed; FHFA not a government actor. |
| Whether pre-conservatorship Fannie Mae was a federal actor | Fannie Mae as private entity should be subject to constitutional limits. | Pre-conservatorship Fannie Mae not federal actor under Lebron framework. | Pre-conservatorship Fannie Mae not a federal actor. |
| Whether post-conservatorship FHFA conservatorship renders Fannie Mae a government actor | Indefinite conservatorship duration shows permanent government control. | Conservatorship is temporary; FHFA stepped into private entity's shoes, not government. | FHFA conservatorship not government actor; Bivens claim dismissed. |
Key Cases Cited
- Lebron v. Nat’l R.R. Passenger Corp., 513 U.S. 374 (U.S. 1995) (defines federal actor analysis when private entities are involved)
- San Francisco Arts & Athletics, Inc. v. U.S. Olympic Comm., 483 U.S. 522 (U.S. 1987) (establishes federal-actor threshold for private action)
- Amtrak v. Lebron, No citation provided in text (–) (example of permanent federal control vs. temporary private ownership)
- O’Melveny & Myers v. FDIC, 512 U.S. 79 (U.S. 1994) (FDIC conservator/receiver status; government actor analysis in conservatorship context)
- Beszborn v. United States, 21 F.3d 62 (5th Cir. 1994) (RTC as receiver not government actor; private entity in receivership)
- Brentwood Academy v. Tennessee Secondary Sch. Athletic Ass’n, 531 U.S. 288 (U.S. 2001) (entwinement test for governmental relation; not controlling for conservatorship)