In re the Liquidation of United Savings & Loan Ass'n of Gary

542 N.E.2d 211, 1989 Ind. App. LEXIS 775, 1989 WL 89808
CourtIndiana Court of Appeals
DecidedAugust 7, 1989
DocketNo. 37A03-8806-CV-188
StatusPublished
Cited by2 cases

This text of 542 N.E.2d 211 (In re the Liquidation of United Savings & Loan Ass'n of Gary) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Liquidation of United Savings & Loan Ass'n of Gary, 542 N.E.2d 211, 1989 Ind. App. LEXIS 775, 1989 WL 89808 (Ind. Ct. App. 1989).

Opinion

HOFFMAN, Judge.

Appellant United States Savings and Loan Association of Gary brings a consolidated appeal from a liquidation proceeding. On February 11, 1988, the Indiana Department of Financial Institutions (D.F.L.) found that the United Savings and Loan (U.S.L.) was in an unsafe and unsound condition and in imminent danger of insolvency. The D.F.I. ordered the seizure and liquidation of U.S.L. On February 12, 1988, the D.E.I. filed a liquidation order in Lake Circuit Court. On that date the Lake Circuit Court stayed the D.F.I.'s liquidation order pending judicial review.

On February 16, 1988, the Lake Circuit Court granted D.F.I's motion to change venue from the county. On March 8, 1988, the Lake Circuit Court venued the case to Jasper Circuit Court.

On March 10, 1988, the Jasper Circuit Court assumed immediate and full jurisdiction, confirmed and appointed the D.F.I. as receiver, froze U.S.L 's financial accounts and ordered the D.F.I. to take possession of all documents, fixtures and certificates of deposit belonging to U.S.L.

On July 18, 1988, the Jasper Circuit Court dismissed U.S.L.'s petition for judicial review.

U.S.L. raises the following issues:

(1) whether the Jasper Circuit Court lacked jurisdiction; and
(2) whether the Jasper Circuit Court erred in dismissing the petition for judicial review.

U.S.L. contends that the Jasper Circuit Court lacked subject-matter jurisdiction to hear the liquidation proceeding. IND.CODE § 28-1-3.1-4 (1988 Ed.) reads in part:

"(a) Immediately upon the taking possession of the business and property of any financial institution under section 2 of this chapter, the department shall give notice by:
# * * * * *
(3) filing the notice in the office of the cireuit court in the county where the principal office of the financial institution is located."

TU.S.L. maintains that the Jasper Circuit Court does not have subject-matter jurisdiction because it is not the county where the principal office of the financial institution is located.

On February 12, 1988, the D.F.I. filed notice in Lake Circuit Court, the county where the principal office of the financial institution is located. On February 16, 1988, the Lake Cireuit Court granted D.F. I.'s motion for change of venue. Nothing in the liquidation statute confers exclusive jurisdiction to or prohibits change of venue from the county where the principal office of the financial institution is located.

U.S.L. asserts that the Jasper Circuit Court did not have jurisdiction over the particular case. U.S.L. claims that the D.E.I. failed to comply with Ind.Rules of Procedure, Trial Rule 78 which states:

"Whenever a court has granted an order for a change of venue to another county and the costs thereof have been paid where an obligation exists to pay such costs for such change, either party to the cause may file a certified copy of the order making such change in the court to which such change has been made, and thereupon such court shall have full jurisdiction of said cause, regardless of the fact that the transcript and papers have not yet been filed with such court to which such change is taken...."

[213]*213On February 15, 1988, D.F.I. filed for change of venue from Lake Cireuit Court. On February 16, 1988, the Lake Circuit Court granted the change of venue. On March 8, 1988, the Lake Circuit Court ven-ued to Jasper Circuit Court and ordered that the record be forwarded to the Jasper Circuit Court. On March 10, 1988, the Jasper Circuit Court assumed immediate and full jurisdiction. The change of venue complied with TR. 78 and gave the Jasper Circuit Court jurisdiction as the receivership court on March 10, 1988.

U.S.L. asserts that the Jasper Circuit Court lacked jurisdiction to confirm and appoint the D.F.I. as receiver, freeze financial accounts and take possession of all U.S.L.'s financial accounts. IND.CODE § 28-1-3.1-4 and 28-1-3.1-5 (1988 Ed.) authorizes a receivership court to act in a liquidation proceeding:

"(c) The receivership court may hear and determine all issues and matters pertaining to or connected with the liquidation of the financial institution...."
IND.CODE § 28-1-3.1-4.
"(b) Upon appointment as receiver, title to all assets of the financial institution vest in the receiver without the execution of any instruments of conveyance, assignment, transfer, or endorsement. If no other receiver is appointed as provided in this chapter, the department shall act as receiver and has all of the powers and duties of a receiver as provided in this chapter.
(c) Except as otherwise provided, the sole and exclusive right to liquidate and terminate the affairs of any financial institution is vested in the receiver appointed under this section, and no other receiver, assignee, trustee, or liquidating agent shall be appointed by any court or any other person."
IND.CODE § 28-1-3.1-5.

U.S.L. maintains that the Jasper Circuit Court erred by vacating the Lake Circuit Court's February 12, 1988 stay order without notice. IND.CODE § 28-1-3.1-5(a) (1988 Ed.) reads in part:

"The receivership court shall approve the department's application if it finds that to do so would be in the public interest. The application may be acted on by the receivership court without any notice except that provided in section 4 of this chapter...."

The D.F.I. provided the notice required by IND.CODE 28-1-3.1-4(a):

"[Thhe department shall give notice by: (1) posting the notice at the main entrance of the principal office of the financial institution;
(2) causing the notice to be served upon the president or other executive officer actively in charge of the business of the financial institution; and
(3) filing the notice in the office of the circuit court in the county where the principal office of the financial institution is located."

The Jasper Circuit Court as the receivership court by change of venue had the authority to act on the liquidation application without any further notice.

U.S.L. maintains that the Jasper Circuit Court lacked jurisdiction because liquidation proceedings do not constitute a civil action. In all civil actions, venue from the county may be changed. T.R. 76.

T.R. 2(A) provides there shall be one form of action known as "civil action." IND.CODE § 28-1-3.1-4 (1988 Ed.) states:

"(b) Upon the filing of the notice under subsection (a), the clerk shall:
# # a * a %
(2) enter the cause as a civil action...."

Liquidation proceedings are civil actions subject to change of venue from the county.

U.S.L. argues that the Jasper Circuit Court lacked jurisdiction because the Lake Cireuit Court did not grant U.S.L.'s motion to strike change of venue. On February 16, 1988, the Lake Circuit Court granted change of venue from the county. On February 26, 1988, U.S.L. filed a motion to strike change of venue from the county. The change of venue striking process had begun by February 26, 1988.

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Bluebook (online)
542 N.E.2d 211, 1989 Ind. App. LEXIS 775, 1989 WL 89808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-liquidation-of-united-savings-loan-assn-of-gary-indctapp-1989.