368 P.3d 264
Wyo.2016Background
- Sky Harbor operated an FBO at Cheyenne Regional Airport under a lease (terminated Dec. 31, 2011 unless extended by conditions Sky Harbor failed to meet) and later leased a Paint Shop; Sky Harbor fell behind on rent and other obligations.
- Sky Harbor assigned its interest in the FBO lease to its lender as collateral in connection with an SBA loan; the assignment preserved Sky Harbor’s continuing liability and gave the bank 60 days to cure any default notice.
- The Airport notified the bank and Sky Harbor of default (Oct. 6, 2010); the Airport terminated the FBO lease (Dec. 23, 2010); the bank entered FDIC receivership in Jan. 2011.
- Separate litigation: federal suit over the Paint Shop resulted in a large judgment for the Airport; state actions included ejectment (District Court), forcible entry and detainer (Circuit Court), and a garnishment action to collect judgments.
- Sky Harbor moved to dismiss state proceedings, arguing FIRREA required the Airport to exhaust administrative claims against the failed bank/FDIC and thus state courts lacked subject matter jurisdiction.
- The Wyoming District and Circuit Courts entered judgments for the Airport on ejectment, FED, and garnishment; Sky Harbor appealed. The Wyoming Supreme Court affirmed.
Issues
| Issue | Plaintiff's Argument (Sky Harbor) | Defendant's Argument (Airport) | Held |
|---|---|---|---|
| Whether state courts lacked subject-matter jurisdiction because FIRREA required administrative exhaustion against the failed bank/FDIC | FIRREA bars courts from adjudicating claims involving assets/acts of failed banks; Airport should have submitted claims to FDIC claims process | Airport’s claims are against Sky Harbor (tenant), not the bank/FDIC; the lease left Sky Harbor liable and the bank had no obligation to pay rents; FIRREA does not apply | Court held state courts had jurisdiction; FIRREA did not bar these suits because Airport sought relief against Sky Harbor, not bank assets or FDIC acts, and administrative process would be futile or inapplicable |
| Whether the Airport’s federal Paint Shop judgment (and resulting garnishment) could be collaterally attacked in state court because of alleged EDA/other defects | Federal judgment invalid because EDA disallowance (or FIRREA issues) nullifies the federal judgment and thus garnishment | Federal judgment was affirmed on appeal (Tenth Circuit); state courts cannot collaterally attack a valid federal judgment | Court held federal judgment and related garnishment stand; state court cannot relitigate or collaterally attack the federal decision |
| Whether summary judgment and ejectment were proper given lease-extension and breach disputes | Lease was extended (various asserted bases) or defenses entitle Sky Harbor to remain; factual disputes required trial | Extension conditions were undisputedly unmet; Sky Harbor produced no evidence to create genuine issues of material fact | Court affirmed summary judgment/ejectment: lease expired (no valid extension) and Sky Harbor breached payment/insurance obligations |
| Whether FDIC/Bank were indispensable parties and joinder required | FDIC/Bank had interests in assigned lease; their absence deprived the court of complete relief and required joinder | Airport’s claims sought relief only against Sky Harbor; FDIC/Bank rights were unaffected and not required for just adjudication | Court held joinder unnecessary: FDIC/Bank were not required parties for Airport’s claims against Sky Harbor and joinder was not compelled |
Key Cases Cited
- Am. Nat’l Ins. Co. v. FDIC, 642 F.3d 1137 (D.C. Cir.) (FIRREA exhaustion may be excused where administrative process is futile)
- Gilmore v. Weatherford, 694 F.3d 1160 (10th Cir.) (administrative exhaustion unnecessary when process cannot provide relief)
- Henrichs v. Valley View Dev., 474 F.3d 609 (9th Cir.) (FIRREA exhaustion applies only when FDIC is in possession of bank assets)
- Rundgren v. Washington Mut. Bank, FA, 760 F.3d 1056 (9th Cir.) (FIRREA governs claims based on assets/acts/omissions of failed depository institutions)