Schettler v. RALRON CAPITAL CORPORATION
275 P.3d 933
Nev.2012Background
- Schetterler/debtor-guarantor faced a Ferrrea/FIRREA framework governing claims against a failed depository institution (Silver State Bank) now held by the FDIC as receiver.
- FDIC published a bar date and required creditor claims; Schettler did not file an administrative claim.
- Silvery State Bank failed and was placed in FDIC receivership on Sept. 5, 2008; FDIC notified Schettler to continue obligations but he remained delinquent.
- March 2009: RalRon Capital acquired ownership of Schettler’s loan and brought suit for breach of contract, implied covenant, unjust enrichment, and guaranty breach.
- District court granted summary judgment for RalRon, barring Schettler’s defenses and counterclaims as barred by FIRREA, and awarded damages and fees.
- The Nevada Supreme Court held FIRREA’s bar applies to claims against a successor in interest but not to the debtor’s defenses or affirmative defenses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FIRREA’s bar applies to claims against a successor in interest to the FDIC | RalRon owns the loan; successor status entitles bar | Schettler argues bar does not apply to non-FDIC actions | Yes, bar applies to claims against successor for acts/omissions of failed bank. |
| Whether FIRREA’s bar precludes defenses and affirmative defenses | N/A | Affirmative defenses permitted; not barred by FIRREA | No; defenses/affirmative defenses are not barred. |
| Whether FDIC’s failure to mail notice of the bar date precludes summary judgment | Due process concerns; failure to mail notice invalidates bar | Notice not required to excuse exhaustion; actual notice suffices | FDIC failure to mail notice does not negate FIRREA applicability. |
| Whether Schettler’s affirmative defense of breach and recoupment suffices to defeat summary judgment | Recoupment bars extra damages; breach defense supports dismissal | Affirmative defense raises facts needing trial; recoupment may apply | Affirmative defense survives; remand for further proceedings on defenses/recoupment. |
Key Cases Cited
- Aber-Shukofsky v. JPMorgan Chase & Co., 755 F. Supp. 2d 441 (E.D.N.Y. 2010) (holds successor in interest may be barred under FIRREA's claims process)
- Benson v. JPMorgan Chase Bank, 673 F.3d 1207 (9th Cir. 2012) (bar applies based on acts/omissions of failed bank, not party identity)
- Village of Oakwood v. State Bank & Trust Co., 539 F.3d 373 (6th Cir. 2008) (applies FIRREA bar to successor in interest)
- American First Federal v. Lake Forest Park, 198 F.3d 1259 (11th Cir. 1999) (holder-in-due-course status and FIRREA bar on claims against FDIC)