Angel v. United States

CourtUnited States Court of Federal Claims
DecidedJune 26, 2025
Docket23-800
StatusUnpublished

This text of Angel v. United States (Angel v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Angel v. United States, (uscfc 2025).

Opinion

In the United States Court of Federal Claims

JOSHUA J. ANGEL, Plaintiff,

v. No. 23-cv-0800 (Filed: June 26, 2025) THE UNITED STATES,

Defendant.

Joshua J. Angel, New York, N.Y., for Plaintiff.

Anthony F. Schiavetti, Civil Division, United States Department of Justice, Washington, D.C., for Defendant.

OPINION AND ORDER

Meriweather, Judge.

Plaintiff, Joshua J. Angel (“Mr. Angel” or “Plaintiff”), on behalf of himself and a putative class of shareholders,1 seeks compensation from the United States for changes to how the Federal National Mortgage Association (“Fannie Mae”) and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) (collectively, “the Enterprises”) declare dividends following the Enterprises’ 2008 financial collapse and subsequent conservatorship. Before the Court is Mr. Angel’s Motion for Reconsideration, ECF No. 34 (“Mot.”), pursuant to Court of Federal Claims Rule 59, requesting that the Court vacate its June 25, 2024 Opinion and Order (“Opinion”) granting Defendant’s Motion to Dismiss. See generally Angel v. United States, 172 Fed. Cl. 102 (2024) (“Angel IV”). Having reviewed this Court’s prior ruling, the relevant filings,2 and the law, the Court DENIES Mr. Angel’s Motion for Reconsideration.

1 “Shareholders,” as used in this Opinion, excludes the Department of Treasury (“Treasury”). See Compl. at 2 n.1, ECF No. 1. 2 The following filings are relevant to this Opinion: Compl., ECF No. 1; Opinion, ECF No. 32; Mot., ECF No. 34; and Def.’s Resp. to Pl.’s Mot. for Recons., ECF No. 38 (“Resp.”). Throughout, page citations to documents in the record refer to the document's original pagination, unless the page is designated with an asterisk (e.g., *1), in which case the reference is to the pagination assigned by PACER/ECF. BACKGROUND

The Court set forth the factual background in detail in its Opinion. See Angel IV, 172 Fed. Cl. at 109–12. For purposes of the pending motion, the Court will briefly summarize the relevant facts and posture of the case.

I. Following the 2008 Housing Market Collapse, Fannie Mae and Freddie Mac Stop Declaring Dividends

In Fairholme Funds, Inc. v. United States, the Federal Circuit detailed the financial history that ultimately led to the Enterprises’ conservatorship and the curtailment of dividend payments that gave rise to Mr. Angel’s claims. 26 F.4th 1274 (Fed. Cir. 2022), cert. denied, 143 S. Ct. 563, cert. denied sub nom. Barrett v. United States, 143 S. Ct. 562, cert. denied sub nom. Owl Creek Asia I, L.P. v. United States, 143 S. Ct. 563, and cert. denied sub nom. Cacciapalle v. United States, 143 S. Ct. 563 (2023). As recounted in Fairholme, and as quoted by this Court in its prior Opinion, Angel IV:

The Enterprises suffered devastating financial losses in the 2008 housing market collapse. In response, Congress enacted the Housing and Economic Recovery Act of 2008 (“HERA”) which created the Federal Housing Finance Agency (“FHFA”), tasked with regulating the Enterprises and (if necessary) stepping in as conservator or receiver. 12 U.S.C. §§ 4511, 4617. HERA also contains a Succession Clause, stating that FHFA “shall, as conservator . . . succeed to [] all rights, titles, powers, and privileges of the [Enterprises], and of any stockholder . . . with respect to the [Enterprises] and [its] assets.” § 4617(b)(2)(A)(i).

In September 2008, the FHFA Director placed the Enterprises into conservatorship. The FHFA Director then negotiated preferred stock purchase agreements (“PSPAs”) with the Treasury.

FHFA and Treasury amended the original PSPA terms. The Third Amendment implemented a “net worth sweep,” which replaced the fixed-rate dividend formula agreed to under the initial PSPAs with a variable one that required the Enterprises to make quarterly payments equal to their entire net worth, minus a small capital reserve amount. The net worth sweep caused the Enterprise to transfer most, if not all, of their equity to Treasury, leaving no residual value that could be distributed to shareholders.

172 Fed. Cl. at 109 (quoting Fairholme, 26 F.4th at 1282–83) (cleaned up).

II. Fannie Mae and Freddie Mac Shareholder Litigation

Following the Third Amendment, “[s]hareholders launched a series of challenges” attempting to undo the net worth sweep itself, or, alternatively, directly seeking compensation for changes to the benefits of owning stock in the Enterprises. See id. at 110 (collecting cases). Although these challenges advanced multiple theories of liability and worked their way through

2 multiple jurisdictions, including, ultimately, the Supreme Court, they were generally unsuccessful. See, e.g., Collins v. Yellen, 594 U.S. 220, 244–46 (2021); Fairholme, 26 F.4th at 1282 (resolving eight appeals of this Court at once and affirming dismissal of: (1) shareholders’ direct constitutional takings claims; (2) shareholders’ direct breach of implied-in-fact contract claims; (3) shareholders’ direct breach of fiduciary duty claims; and (4) shareholders’ derivative constitutional and non-constitutional claims); Wash. Fed. v. United States, 26 F.4th 1253, 1259 (Fed. Cir. 2022) (affirming dismissal of suit based on conservatorship); Perry Cap. LLC v. Mnuchin, 864 F.3d 591, 633 (D.C. Cir. 2017) (affirming dismissal of statutory challenges to the validity of the Third Amendment and breach of fiduciary duty claims as barred by HERA’s Succession Clause); Kellmer v. Raines, 674 F.3d 848, 852 (D.C. Cir. 2012); Perry Cap. LLC v. Lew, 70 F. Supp. 3d 208, 232 (D.D.C. 2014) (“[T]he [c]ourt finds that HERA’s plain language bars shareholder derivative suits, without exception.”).

III. Angel I–Angel III

As such, Mr. Angel’s claims do not present any issues of first impression for this Court— in fact, Mr. Angel himself contributed significantly to the development of the body of caselaw applicable here. In 2018, Mr. Angel, a holder of junior preferred stock in the Enterprises, filed his first, but certainly not his last, suit in the District Court for the District of Columbia pro se,3 alleging that the Third Amendment was a breach of contract and breach of good faith and fair dealing. See Angel v. Fed. Home Loan Mortg. Corp., No. 18-cv-1142, 2019 WL 1060805 (D.D.C. Mar. 6, 2019), aff’d, 815 F. App’x 566 (D.C. Cir. 2020) (“Angel I”). The District Court for the District of Columbia dismissed Mr. Angel’s claims as time barred under the relevant states’ statute of limitations periods, id. at *2–3, then denied Mr. Angel leave to amend as futile, Angel v. Fed. Home Loan Mortg. Corp., No. 18-cv-1142, 2019 WL 11320986 at *2 (D.D.C. May 24, 2019), aff’d, 815 F. App’x at 566.

Less than two months later, Mr. Angel filed suit in this Court alleging the same claims as he did in Angel I, but voluntarily dismissed that action to avoid this Court’s decision to issue a stay pending the Supreme Court’s decision in the then-undecided case of Collins v. Yellen. See Angel v. United States, No. 20-cv-737 (Fed. Cl. Oct. 27, 2020) (“Angel II”), Order Granting Mot. to Stay, ECF No. 15; Angel II, Notice of Voluntary Dismissal, ECF No. 39. Only four days after dismissing Angel II, Mr. Angel again filed in this Court—“rehashing the same facts . . . and modifying, slightly, his theories of recovery.” Angel IV, 172 Fed. Cl. at 111; see also Angel v. United States, No. 22-cv-0867 (Fed. Cl. Aug. 8, 2022) (“Angel III”), Compl., ECF No. 1. This Court dismissed Angel III on May 12, 2023, and Mr.

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Angel v. United States, Counsel Stack Legal Research, https://law.counselstack.com/opinion/angel-v-united-states-uscfc-2025.