Benítez-Rodríguez v. Fed. Deposit Ins. Corp.

378 F. Supp. 3d 136
CourtUnited States District Court
DecidedApril 29, 2019
DocketCivil No. 15-1678 (FAB)
StatusPublished

This text of 378 F. Supp. 3d 136 (Benítez-Rodríguez v. Fed. Deposit Ins. Corp.) is published on Counsel Stack Legal Research, covering United States District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Benítez-Rodríguez v. Fed. Deposit Ins. Corp., 378 F. Supp. 3d 136 (usdistct 2019).

Opinion

BESOSA, District Judge.

Defendant Federal Deposit Insurance Corporation, as receiver for Doral Bank ("FDIC-R"), moves to dismiss the claims set forth by plaintiff Dionisio Benítez-Rodríguez ("Benítez") pursuant to Federal Rule of Civil Procedure 12(b)(1) (" Rule 12(b)(1)"). (Docket No. 17.) For the reasons set forth below, the Court GRANTS the FDIC-R's motion to dismiss.

I. Background

Doral Bank ("Doral") loaned Benítez $ 206,400.00 to purchase a property in Gurabo, Puerto Rico. (Docket No. 13, Ex. 1 at p. 56.) Benítez defaulted on the loan, prompting Doral to commence a foreclosure action in the Puerto Rico Court of First Instance, Caguas Division, on April 7, 2014 (hereinafter the "foreclosure action"). Id.; see Doral Bank v. Benítez-Rodríguez, Case No. EAC2014-0415. Doral moved for summary judgment on April 22, 2014. (Docket No. 13, Ex. 1 at p. 40.) The Court of First Instance granted Doral's motion for summary judgment, ordering Benítez to pay "$ 180.58.88 [sic ] in principal, plus interests [sic ] at 6.950% annually starting October 1, 2013, as well as the current and future interests [sic ] accrued beginning on that date until the debt is paid in full." Id. at p. 45. In the event that Benítez failed to comply with the revised payment schedule, the Court of First Instance ordered the "Marshalls [sic ] to sell the mortgaged property ... and to apply to the debt monies received from the sale." Id.1

On December 31, 2014, Benítez commenced an action against Doral, asserting that Doral "fraudulently alleged that it was the holder by endorsement of the Original PROMISSORY NOTE, which it was not, which constitutes fraud on the Court" (hereinafter the "fraud causes of action"). Docket No. 15, Ex. 1 at p. 12; see Benítez-Rodríguez v. Doral Bank, Case No. EAC2014-0538704. Benítez requested that the Court of First Instance, Caguas Division, nullify the foreclosure action. Id.

Before disposition of the fraud causes of action, the Office of the Commissioner of Financial Institutions closed Doral and appointed the FDIC-R to serve as Doral's receiver. (Docket No. 1. at p. 1.) The FDIC-R "succeeded to all of Doral's rights, titles, powers, privileges, assets, and liabilities, including Doral's interest in this pending action." Id. (citing 12 U.S.C. § 1821(d) ); see O'Melveny & Myers v. FDIC, 512 U.S. 79, 86, 114 S.Ct. 2048, 129 L.Ed.2d 67 (1994) (holding that pursuant to the language of *13912 U.S.C. section 1821(d), the FDIC "steps into the shoes" of a failed institution). On May 14, 2015, the FDIC-R notified Benítez that "any claims against [Doral] must be filed on or before June 04, 2015 (the 'Claims Bar Date')." (Docket No. 17, Ex. 1 at p. 4.) The notice provided that:

In order for the Receiver to consider your claim you must submit the properly completed Proof of Claim Form along with the supporting documentation to the Receiver by the Claims Bar Date ... Failure to file your claim on or before the Claims Bar Date will result in disallowance by the Receiver, and the disallowance will be final.

Id. (citing 12 U.S.C. § 1821(d)(5)(c)(i) ). The FDIC-R also mailed the notice to Benítez's attorney. (Docket No. 17. Ex. 1 at p. 11.)

The FDIC-R removed the fraud causes of action to this Court on May 27, 2015. (Docket No. 1.) The Court stayed this action, however, "until September 8, 2015 or for 60 days after the disallowance of claims, whichever date [occurred] first." (Docket No. 10.) The stay allowed Benítez "to exhaust the administrative remedies allowed by the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA)." Id. Benítez did not file "an administrative claim with the FDIC-R by the Claims Bar Date and/or the submission deadline." (Docket No. 17, Ex. 1 at p. 3.) The FDIC-R moves to dismiss the fraud causes of action because Benítez failed to comply with the administrative review process in FIRREA. (Docket No. 17 at p. 8.) The FDIC-R's motion to dismiss is unopposed.

II. Motion to Dismiss

The FDIC-R moves to dismiss the fraud causes of action pursuant to Federal Rule of Civil Procedure 12(b)(1). (Docket No. 17 at p. 1.) Pursuant to Rule 12(b)(1), a party may move to dismiss an action for lack of subject-matter jurisdiction. See Fed. R. Civ. P. 12(b)(1). Subject-matter jurisdiction is properly invoked when a plaintiff asserts a colorable claim "arising under" the United States Constitution or federal law. 28 U.S.C. § 1331 ; Arbaugh v. Y & H Corp., 546 U.S. 500, 513, 126 S.Ct. 1235, 163 L.Ed.2d 1097 (2006) (internal citation omitted). In considering a Rule 12(b)(1) motion, the Court "must credit the plaintiff's well-pled factual allegations and draw all reasonable inferences in the plaintiff's favor." Merlonghi v. U.S., 620 F.3d 50, 54 (1st Cir. 2010) (internal citations omitted).

A. FIRREA Sets Forth a Mandatory Administrative Claims Process

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Bluebook (online)
378 F. Supp. 3d 136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benitez-rodriguez-v-fed-deposit-ins-corp-usdistct-2019.