First NBC Bank, et al v. Baehr

Filing 5

ORDER: IT IS ORDERED that the 3 motion to stay is GRANTED. The above-captioned matter is hereby STAYED for 180 days from the date of this Order or until this Court grants a motion to reopen, as described below. IT IS FURTHER ORDERED that the above- captioned matter is ADMINISTRATIVELY CLOSED, for statistical purposes only, without prejudice to the parties' rights to reopen the case after 180 days or after the FDIC denies Defendant's claims for administrative relief, whichever occurs f irst. IT IS FURTHER ORDERED that the FDIC shall, 180 days from the date of this Order, or within thirty (30) days after the FDIC denies Defendant's claims for administrative relief, file either a motion to reopen the case and to set a preliminary conference or a motion to dismiss. Signed by Judge Ivan L.R. Lemelle on 7/5/2017. (mmv)

UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
FIRST NBC BANK, ET AL.

CIVIL ACTION

VERSUS

NO. 17-5466

ANN R. BAEHR

SECTION "B"(5)
ORDER

Before

the

Court

is

the

“Federal

Deposit

Insurance

Corporation’s Motion to Stay Action.” Rec. Doc. 3. The motion was
set for submission on July 5, 2017. Pursuant to Local Rule 7.5,
Defendant’s memorandum in opposition was due on or before June 27,
2017. No memorandum in opposition has been filed. Further, no party
filed a motion to continue the noticed submission date or a motion
for an extension of time within which to oppose the motion.
On May 31, 2016, First NBC Bank (“First NBC”) filed a petition
for foreclosure in rem via executory process against Ann R. Baehr
(“Defendant”) in state court. Rec. Doc. 3-1 at 1. On April 28,
2017, First NBC was closed and the Federal Deposit Insurance
Corporation

(“FDIC”)

was

confirmed

as

receiver.

Id.

at

2.

Thereafter, Defendant filed a motion to suspend the foreclosure
and the FDIC removed the matter to federal court. Id.
Under

the

Financial

Institutions

Reform,

Recovery

and

Enforcement Act of 1989 (“FIRREA”), “[a]fter the appointment of a
. . . receiver for an insured depository institution, the . . .
receiver may request a stay for a period not to exceed . . . 90

days . . . in any judicial proceeding to which such institution is
or becomes a party.” 12 U.S.C. § 1821(d)(12)(A)(ii). “Upon receipt
of a request by any . . . receiver . . . for a stay of any judicial
action or proceeding in any court with jurisdiction of such action
or proceeding, the court shall grant such stay as to all parties.”
12 U.S.C. § 1821(d)(12)(B) (emphasis added).
Here, the FDIC requests a stay of 180 days to allow the
parties to exhaust the administrative remedies provided by the
FIRREA. Rec. Doc. 3-1 at 2; see also 12 U.S.C. § 1821(d)(3)-(5).
Because the administrative process may take 180 days, courts have
recognized that “while a 180-day stay is not mandatory, ‘such a
stay must be implied to effectuate the purpose of the act.’”
Zaremba Grp., LLC v. FDIC, No. 10-11245, 2010 WL 3805190, at *2
(E.D. Mich. Sept. 23, 2010) (quoting Guar. Residential Lending,
Inc. v. Homestead Mortg. Co., No. 04-74842, 2009 WL 5214877, at *2
(E.D. Mich. Dec. 28, 2009)) (citing Marquis v. F.D.I.C., 965 F.2d
1148, 1151-52 (1st Cir. 1992); Meliezer v. Resolution Trust Co.,
952 F.2d 879, 882 (5th Cir. 1992) (“Although FIRREA does not
explicitly mandate exhaustion of administrative remedies before
judicial intervention, the language of the statute and indicated
congressional

intent

make

clear

that

such

is

required”)).

Accordingly,
IT IS ORDERED that the motion to stay (Rec. Doc. 3) is
GRANTED. The above-captioned matter is hereby STAYED for 180 days

from the date of this Order or until this Court grants a motion to
reopen, as described below.
IT IS FURTHER ORDERED that the above-captioned matter is
ADMINISTRATIVELY CLOSED, for statistical purposes only, without
prejudice to the parties’ rights to reopen the case after 180 days
or after the FDIC denies Defendant’s claims for administrative
relief, whichever occurs first.
IT IS FURTHER ORDERED that the FDIC shall, 180 days from the
date of this Order, or within thirty (30) days after the FDIC
denies Defendant’s claims for administrative relief, file either
a motion to reopen the case and to set a preliminary conference or
a motion to dismiss. FAILURE TO TIMELY FILE SUCH MOTION MAY LEAD
TO SANCTIONS, INCLUDING DISMISSAL, WITHOUT FURTHER NOTICE. See FED.
R. CIV. P. 41(b).
New Orleans, Louisiana, this 5th day of July, 2017.

___________________________________
SENIOR UNITED STATES DISTRICT JUDGE