LNV Corporation v. Outsource Service Management, LLC et al

Filing 140

ORDER re supplemental briefing. (Written Opinion) Signed by Judge Joan N. Ericksen on May 6, 2015. (CBC)

UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA

LNV Corporation,
Plaintiff,
No. 13-cv-1926 (JNE/LIB)
ORDER

v.
Outsource Service Management, LLC
d/b/a Presidium Asset Solutions and
BF-Negev, LLC,
Defendants.

In its Complaint, Plaintiff LNV Corporation asserts that the “Court possesses jurisdiction
in accordance with 28 U.S.C. § 1331 because LNV’s right to relief depends on a resolution of the
applicability of, among other things, 12 U.S.C. §§ 1821(d)(3)-(6), (d)(13)(D).” LNV’s citation
there is to the provisions of the Financial Institutions Reform, Recovery, and Enforcement Act
(FIRREA) that govern the administrative adjudication of claims against failed banks in
receivership with the Federal Deposit Insurance Corporation
The Court questions whether the manner in which FIRREA arises and the role it plays in
this case is sufficient to confer subject matter jurisdiction under § 1331. See Hertz Corp. v.
Friend, 559 U.S. 77, 94 (2010) (noting that a court has “an independent obligation to determine
whether subject-matter jurisdiction exists, even when no party challenges it”). Compare Vaden
v. Discover Bank, 556 U.S. 49, 60, 70 (2009) (“Federal jurisdiction [under § 1331] cannot be
predicated on an actual or anticipated defense . . . [n]or can federal jurisdiction rest upon an
actual or anticipated counterclaim.”), with Pub. Serv. Comm’n of Utah v. Wycoff Co., 344 U.S.
237, 248 (1952) (“Where the complaint in an action for declaratory judgment seeks in essence to
assert a defense to an impending or threatened state court action, it is the character of the
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threatened action, and not of the defense, which will determine whether there is federal-question
jurisdiction in the District Court.”).
The parties are therefore ordered to each submit a single brief addressing whether the
Court has subject matter jurisdiction over this case by May 28, 2015. The issue will be taken up
at the hearing on LNV’s second motion for summary judgment that is currently scheduled for
June 1, 2015.

Dated: May 6, 2015

s/Joan N. Ericksen____________
JOAN N. ERICKSEN
United States District Judge

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