Federal Deposit Insurance Corporation v. Gabler

Filing 8

ORDER granting 4 Motion to Stay this case for the earlier of 180 days from the date of Defendants submission of the claims to the FDIC or ten (10) days after the date the FDIC tenders a final written determination upon Defendants claims. Signed by Magistrate Judge Dennis Howell on 5/11/11. (siw)

IN THE UNITED STATES DISTRICT COURT
FOR THE WESTERN DISTRICT OF NORTH CAROLINA
ASHEVILLE DIVISION
1:11cv82
FEDERAL DEPOSIT INSURANCE
CORPORATION AS RECEIVER FOR
THE BANK OF ASHEVILLE,
Plaintiff,
v.
GEORGE M. GABLER,
Defendant.
______________________________________

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ORDER

Pending before the Court is Plaintiff’s Motion to Stay [# 4]. Following the
insolvency of The Bank of Asheville, the Federal Deposit Insurance Corporation
(“FDIC”) was appointed as Receiver. The Defendant asserts a number counterclaims
against the Bank of Asheville, which constitute potential liabilities of the FDIC. The
FDIC moves for a stay of these proceedings pending the exhaustion of Defendant’s
administrative remedies. The Court GRANTS Plaintiff’s motion.
I.

Analysis
Congress enacted the Financial Institutions Reform, Recovery and

Enforcement Act of 1989 (“FIRREA”) in order to create a comprehensive federal
system for efficiently dealing with the claims resulting from the failed savings and

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loan institutions. Brady Dev. Co., Inc. v. Resolution Trust Corp. 14 F.3d 998, 1002
(4th Cir. 1994). FIRREA sets forth a detailed procedure pursuant to which claimants
submit all claims involving the insolvent institution. Id. at 1003. These procedures
require individuals making claims against failed financial institutions to first submit
their claims to the receiver for resolution. Tillman v. Resolution Trust Corp., 37 F.3d
1032, 1035 (4th Cir. 1994). The receiver has 180 days to determine whether or not
to allow the claim. Id.; 12 U.S.C. § 1821(d)(5).
If the receiver disallows the claim, then the claimant may seek further
administrative determination or judicial relief. Brady, 14 F.3d at 1003. Courts,
however, lack jurisdiction to hear any claim until it has either been disallowed by the
receiver or the 180 day review period has expired. Id. at 1003-04 (“Only after the
[receiver] denies a claim or fails to act within 180 days after receiving the claim may
judicial review be sought or a previously filed action continuted.”); 12 U.S.C. §
1821(d)(13)(D).

“The statutory scheme of FIRREA thus provides a dispute

resolution structure that allows the [receiver] initially to collect assets, determine
rights, and resolve claims before disputes over such matter can be heard in court.”
Tillman, 37 F.3d at 1036.
Here, the FDIC as Receiver published a notice advising creditors of the Bank
of Asheville to submit all claims by the claims bar date as required by the FIRREA.

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The Court lacks jurisdiction to consider Defendant’s counterclaims until either the
expiration of the 180 day period or the FDIC disallows the claims. Accordingly, a
stay of these proceedings is required, and the Court GRANTS Plaintiff’s Motion to
Stay [# 4].
II.

Conclusion

The Court GRANTS Plaintiff’s Motion to Stay [# 4]. The Court STAYS this
case for the earlier of 180 days from the date of Defendant’s submission of the claims
to the FDIC or ten (10) days after the date the FDIC tenders a final written
determination upon Defendant’s claims.

Signed: May 11, 2011

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