Portfolio FB-Idaho, LLC et al v. Federal Deposit Insurance Corporation as Receiver for the First Bank of Idaho

Filing 57

MEMORANDUM DECISION AND ORDER granting 51 Motion to Enforce Judgment. Plaintiffs shall release the Portfolio Assignment within 5 business days of the date of this Order. Signed by Judge B. Lynn Winmill. (caused to be mailed to non Registered Participants at the addresses listed on the Notice of Electronic Filing (NEF) by cjm)

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF IDAHO

PORTFOLIO FB-IDAHO, LLC, a
Delaware Limited Liability Company, and
ANACONDA INVESTMENTS, LLC, a
Delaware Limited Liability Company,

Case No. 1:10-CV-377-BLW
MEMORANDUM DECISION AND
ORDER

Plaintiffs/
Counterdefendants,
v.
FEDERAL DEPOSIT INSURANCE
CORPORATION AS RECEIVER FOR
FIRST BANK OF IDAHO,
Defendant/
Counterclaimant.

INTRODUCTION
The Court has before it Defendant’s Motion to enforce Memorandum Decision and
Order (Dkt. 51).
BACKGROUND
A detailed background of this case is set forth in the Court’s earlier Memorandum
Decision and Order (Dkt. 41). Here, the Court will give only a brief description of the
relevant procedural background.
On July 5, 2010, Anaconda and Portfolio filed a complaint in Idaho state court

MEMORANDUM DECISION AND ORDER - 1

seeking a declaratory judgment of their rights in the Stilwyn loan and rights to the transfer
of the loan documentation. Dkt. 1, Ex. 3. On July 15, 2010, Plaintiffs recorded a Notice
of Lis Pendens in Blaine County against the Real Property. FDIC removed the case to
federal court, and asserted counterclaims against Plaintiffs, alleging slander of title and a
violation of 12 U.S.C. § 1825(b)(2). Dkt. 3. Plaintiffs moved for summary judgment on
their claims against Defendant, and FDIC moved for summary judgment on its
§1825(b)(2) claim against Plaintiff. Dkts. 9 & 17.
As more fully explained in the Court’s earlier decision, because of a material
breach, the Stilwyn loan deal between FDIC and IFB never closed, and FDIC did not
deliver or indorse to IFB the Note, Bill of Sale, Deed of Trust, or the original Assignment
and Assumption Agreement. Therefore, IFB never obtained an interest in the Stilwyn
loan. As an assignor of only IFB’s rights in the Stilwyn loan, Anaconda received no
interest in the Stilwyn loan. Portfolio likewise received no interest in the loan because it
received all of its rights from Anaconda, and Anaconda had no right to the loan.
Accordingly, the Court denied Plaintiffs’ motion for summary judgment.
In turn, the Court determined that FDIC currently owns the Stilwyn Loan interest
in the subject property. Pursuant to 12 U.S.C. § 1825(b)(2), “[w]hen acting as receiver . .
. no property of the [FDIC] shall be subject to levy, attachment, garnishment, foreclosure,
or sale without the consent of the [FDIC], nor shall any involuntary lien attach to the
property of the [FDIC].” Here, FDIC did not consent to any of these proceedings.
Accordingly, the Court determined that the Portfolio assignment and lis pendens were
MEMORANDUM DECISION AND ORDER - 2

improper, and the Court granted FDIC’s motion for summary judgment on 18 U.S.C.
§1825(b)(2) claim.
ANALYSIS
1.

Motion to Enforce Memorandum Decision and Order
In accordance with the Court’s Order, Plaintiffs released the lis pendens.

However, Plaintiffs have not released the Portfolio assignment. FDIC now asks the Court
for an order directing Plaintiffs to release that assignment by a date certain.
Plaintiffs contend that the Court granted only partial summary judgment on a
single claim, and therefore the judgment is not enforceable. That is not true. The Court
granted complete summary judgment on FDIC’s second counterclaim regarding 12
U.S.C. §1825(b)(2). The comments to the 2010 amendments to Rule 56 indicate that the
first sentence of subsection (a) was added to make clear at the beginning that summary
judgment may be requested not only as to an entire case but also as to a claim, defense, or
part of a claim or defense. Here, FDIC requested summary judgment as to one entire
claim – its second counterclaim regarding 12 U.S.C. §1825(b)(2). The Court granted that
motion in full and determined that the Portfolio assignment and lis pendens were
improper. Dkt. 41.
Defendant also attempts to take a third bite at the apple by once again arguing that
FDIC did not retain an interest in the Stilwyn loan. The Court found otherwise in its
original Memorandum Decision and Order. Dkt. 41. The Court reasserted its finding
when it denied Plaintiffs’ motion for reconsideration. Dkt. 46. The Court will not
MEMORANDUM DECISION AND ORDER - 3

continue to address motion after motion to reconsider its decision.
For these reasons, the Court will grant FDIC’s motion to enforce the Court’s
earlier Memorandum Decision and Order.
ORDER
IT IS ORDERED:
1.

Defendant’s Motion to enforce Memorandum Decision and Order (Dkt. 51)
is GRANTED. Plaintiffs shall release the Portfolio Assignment within 5
business days of the date of this Order.

DATED: May 29, 2011

Honorable B. Lynn Winmill
Chief U. S. District Judge

MEMORANDUM DECISION AND ORDER - 4