780 F.3d 1256
9th Cir.2015Background
- In 2007 MTB Enterprises entered a $17 million loan/credit arrangement with ANB Financial to develop property in Idaho; ANB later failed and stopped paying the final $6 million.
- The FDIC was appointed receiver and transferred ANB’s assets/liabilities to ADC Venture 2011–2, LLC.
- MTB filed an administrative claim with the FDIC and a 2008 lawsuit that was transferred to the Western District of Arkansas and then voluntarily dismissed.
- In 2012 MTB sued ADC Venture in the District of Idaho alleging ADC assumed ANB’s loan obligations; the district court dismissed, finding no assumption of liability.
- On appeal ADC argued for the first time that the suit was in the wrong district under FIRREA’s §1821(d)(6)(A)(ii); the Ninth Circuit considered whether that provision is jurisdictional.
- The Ninth Circuit concluded §1821(d)(6)(A)(ii) is jurisdictional and dismissed MTB’s suit for lack of subject-matter jurisdiction because MTB filed in the District of Idaho rather than the two districts authorized by FIRREA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FIRREA §1821(d)(6)(A)(ii) is jurisdictional or venue | MTB acknowledged circuit law indicates it is jurisdictional but argued equitable/transfer history excused compliance | ADC contended the statutory venue rule is jurisdictional and bars suits filed outside the prescribed districts | The provision is jurisdictional; failure to file in an authorized district requires dismissal |
| Whether prior filing/transferred suit satisfied FIRREA for later suits | MTB argued earlier 2008 filing (transferred to W.D. Ark.) should excuse later compliance | ADC argued each federal suit must independently comply with §1821(d)(6)(A)(ii) | Court held prior filing does not satisfy §1821(d)(6)(A)(ii) for subsequent suits |
Key Cases Cited
- Henderson v. Shinseki, 562 U.S. 428 (Sup. Ct.) (clarifies when statutory limits are jurisdictional)
- Arbaugh v. Y & H Corp., 546 U.S. 500 (Sup. Ct.) (requires clear congressional statement to make statutory rule jurisdictional)
- Benson v. JPMorgan Chase Bank, N.A., 673 F.3d 1207 (9th Cir.) (describing FIRREA’s purposes and procedures)
- McCarthy v. FDIC, 348 F.3d 1075 (9th Cir.) (discussing FIRREA’s goals for winding up failed banks)
- Lloyd v. FDIC, 22 F.3d 335 (1st Cir.) (treating §1821(d)(6)(A) as jurisdictional)
- In re Lewis, 398 F.3d 735 (6th Cir.) (holding jurisdiction-stripping provision applies to §1821(d) as a whole)
- Rundgren v. Washington Mut. Bank, 760 F.3d 1056 (9th Cir.) (treating FIRREA administrative-exhaustion rules as jurisdictional)
- Miller v. FDIC, 738 F.3d 836 (7th Cir.) (treating §1821(d)(6)(B) time limit as jurisdictional)
