Maldonado-Torres v. Federal Deposit Insurance
2012 U.S. Dist. LEXIS 38756
D.P.R.2012Background
- FDIC-R was appointed receiver of RG Premier Bank after its closure by Puerto Rico regulators on April 30, 2010.
- Torres, a former RG Premier employee, filed administrative claims with FDIC-R for severance, vacation, and a bonus on June 2, 2010.
- FDIC-R granted vacation and a bonus but disallowed the Law 80 severance claim on February 11, 2011.
- Torres filed suit in Puerto Rico state court on April 20, 2011; FDIC-R removed the case to federal court on June 2, 2011 asserting federal question jurisdiction under FIRREA.
- FDIC-R argues FIRREA’s administrative exhaustion and bar provisions divest the court of jurisdiction if claims aren’t properly exhausted or timely continued, and the Court must decide on subject-matter jurisdiction.
- The Court ultimately grants FDIC-R’s motion to dismiss for lack of subject-matter jurisdiction.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether severance claim is barred for failure to exhaust FIRREA process | Torres contends the administrative process was complied with and timely pursued | FDIC-R argues 60-day deadline after disallowance and 180-day determination period were not met, barring review | Severance claim barred; no jurisdiction |
| Whether workers’ compensation claim was exhausted under FIRREA | Torres asserts entitlement to workers’ compensation under Law 45 | FDIC-R asserts plaintiffs failed to exhaust administrative process for workers’ compensation | Workers’ compensation claim barred; no jurisdiction |
Key Cases Cited
- Lloyd v. FDIC, 22 F.3d 335 (1st Cir. 1994) (exhaustion requirements under FIRREA; administrative bar to claims)
- Marquis v. FDIC, 965 F.2d 1148 (1st Cir. 1992) (administrative bar and exhaustion under FIRREA)
- Resolution Trust Corp. v. W.W. Dev. & Mgmt., Inc., 73 F.3d 1298 (3d Cir. 1996) (congress contemplated 60-day/180-day timelines for administrative actions)
- Viqueira v. First Bank, 140 F.3d 12 (1st Cir. 1998) (federal-question jurisdiction; well-pled complaint standard)
- Arbaugh v. Y&H Corp., 546 U.S. 500 (Supreme Court 2006) (implications for jurisdiction and pleading standards in federal courts)