Federal Deposit Insurance v. Meyerland Co.

960 F.2d 512
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 20, 1992
Docket89-6118
StatusPublished
Cited by9 cases

This text of 960 F.2d 512 (Federal Deposit Insurance v. Meyerland Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Deposit Insurance v. Meyerland Co., 960 F.2d 512 (5th Cir. 1992).

Opinions

[514]*514DUHÉ, Circuit Judge:

Proceedings Below and Appellate Jurisdiction

Meyerland Co. and William M. Adkinson sued Continental Savings Association (“Continental”) for, among other things, usury and fraud in state court. Continental counterclaimed for fraud and breach of contract. The trial court awarded Continental $30,031,089.99 and Adkinson $1,124,-109.59 in damages. Meyerland and Adkin-son appealed.

After the appeal was filed, the Federal Home Loan Bank Board declared Continental insolvent and appointed the Federal Savings and Loan Insurance Corporation (FSLIC) as receiver. The FSLIC removed to federal district court which remanded on April 21, 1989.

On August 9, 1989, the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA), Pub.L. 101-73, 103 Stat. 183, 383, was enacted. The Federal Deposit Insurance Corporation (FDIC) succeeded the FSLIC as the receiver of Continental and the FDIC then removed this case on September 7, 1989 under § 209[4] of FIRREA (12 U.S.C. § 1819(b)(2)(B)).2 The district court again remanded and awarded the appellees $2,500 in sanctions.

The FDIC appeals. Although remand orders are generally not appealable, 12 U.S.C. § 1819(b)(2)(C) authorizes an appeal in this case. This appeal presents two issues: (1) whether 12 U.S.C. § 1819(b)(2) authorizes the FDIC to remove a state court appellate proceeding, and (2) whether the district court erred in awarding sanctions.

I. Removal Power Under FIRREA

Congress enacted FIRREA, a broad revision in federal banking law, in response to the recent and ongoing savings and loan crisis. See Meliezer v. Resolution Trust Corp., 952 F.2d 879, 881 (5th Cir.1992); Smallwood v. Office of Thrift Supervision, 925 F.2d 894, 898 (6th Cir.1991). One of the ways FIRREA addresses the problems facing this nation’s thrift institutions is through “provisions which expand, enhance and clarify enforcement powers of the financial institution regulatory agencies.” H.R.Rep. No. 101-54(1), 101st Cong., 1st Sess. 291, 311, reprinted in 1989 U.S.Code Cong. & Admin.News 86, 107. Specifically, FIRREA greatly expands the FDIC’s role in regulating and supervising such institutions. Id. at 310-11, reprinted in 1989 U.S.Code Cong. & Admin.News at 106-07. See also Note, The FDIC’s Enhanced Powers Over Savings Associations: Does FIRREA Make It “SAIF”?, 59 Ford.L.Rev. S381, S382 (1991).

This case requires us to examine the extent of the FDIC’s powers under FIR-REA. At issue are jurisdictional and removal provisions giving the FDIC broad power to gain access to federal courts in actions to which it is a party pursuant to FIRREA. The provisions relating to removal, found in 12 U.S.C. § 1819(b)(2), read as follows:

(A) In general
Except as provided in subparagraph (D), all suits of a civil nature at common law or in equity to which the Corporation, in any capacity, is a party shall be deemed to arise under the laws of the United States.
(B) Removal
Except as provided in subparagraph (D), the Corporation may, without bond or security, remove any such action, suit, or proceeding from a state court to the [515]*515appropriate United States district court, (emphasis supplied).3

The power conferred by FIRREA to invoke federal jurisdiction and to remove from state court is substantial. See Carrollton-Farmers Branch Independent School District v. Johnson & Cravens, 889 F.2d 571, 572 (5th Cir.1989); Triland & Holdings & Co. v. Sunbelt Service Corp., 884 F.2d 205, 207 (5th Cir.1989). See also Jameson v. FDIC, 931 F.2d 290, 291 (5th Cir.1991) (FIRREA extends FDIC’s jurisdiction to include persons no longer affiliated with insured institutions); FDIC v. Griffin, 935 F.2d 691, 696 (5th Cir.1991) (allowing federal jurisdiction even when FDIC has been voluntarily dismissed as a party), cert. denied, — U.S. -, 112 S.Ct. 1163, 117 L.Ed.2d 410 (1992). Access to federal courts in all actions to which it is a party allows the FDIC to develop and rely on a national and uniform body of law, consistent with eliminating the problems identified by Congress in having less rigorous state standards coexisting with federal ones.4 See Smallwood v. Office of Thrift Supervision, 925 F.2d at 898 (“We read many portions of the FIRREA as establishing the primacy of the Federal interest as regards the solvency and viability of the Federal deposit insurance system.”).

In the case before us, first FSLIC and then the FDIC sought removal from state to federal court, FSLIC under 12 U.S.C. § 1730(k)(l) (repealed by FIRREA) and the FDIC under 12 U.S.C. § 1819(b)(2)(B), after a state court judgment had been entered, without seeking relief from judgment under Fed.R.Civ.P. 60, and while the case was on appeal to the appropriate state appellate court. In each case, the federal district court remanded to state court, concluding that neither FIRREA nor 28 U.S.C. §§ 1441-51, the general removal statutes, authorized removal at this stage of the proceedings.

Although it is not clear whether the general removal statutes permit appellate removal,5 the dissenters rely upon the rule that federal district courts lack jurisdiction to review final state court judgments to support their position that § 1819 does not permit it. Specifically, they rely on Dis[516]*516trict of Columbia Court of Appeals v. Feldman, 460 U.S. 462, 476,103 S.Ct. 1303, 1311, 75 L.Ed.2d 206 (1983), and Hooker v. Fidelity Trust Co., 263 U.S. 413, 44 S.Ct. 149, 68 L.Ed. 362 (1923). Their reliance is misplaced. Under the Rooker-Feldman line of cases, federal statute defines “final state court judgments” as those “rendered by the highest court of a state in which a decision could be had.” 28 U.S.C. § 1257(a). The judgment of the Texas state district court is not a “final” judgment within this definition. Two higher courts within the state judiciary could hear appeals. See Market St. Ry. Co. v. Railroad Commission of State of California, 324 U.S. 548

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Matter of Meyerland Co.
960 F.2d 512 (Fifth Circuit, 1992)

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Bluebook (online)
960 F.2d 512, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-deposit-insurance-v-meyerland-co-ca5-1992.