Towns Real Estate & Appraisal Services, Inc. v. Resolution Trust Corp.

753 F. Supp. 914, 1991 U.S. Dist. LEXIS 278, 1991 WL 1309
CourtDistrict Court, N.D. Alabama
DecidedJanuary 8, 1991
DocketCiv. A. 90-AIR-2691-S
StatusPublished
Cited by14 cases

This text of 753 F. Supp. 914 (Towns Real Estate & Appraisal Services, Inc. v. Resolution Trust Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Towns Real Estate & Appraisal Services, Inc. v. Resolution Trust Corp., 753 F. Supp. 914, 1991 U.S. Dist. LEXIS 278, 1991 WL 1309 (N.D. Ala. 1991).

Opinion

MEMORANDUM OPINION

ACKER, District Judge.

On December 26, 1990, this court entered an order directing Resolution Trust Corporation (“RTC”), as receiver for City Federal Savings & Loan Association, to show cause, if it could do so, why the above-entitled case should not be remanded to the state court. 1 RTC responded on January 3, *915 1991, contending that it was not “substituted” for City Federal as a party in the state court proceeding involving City Federal until December 13, 1990, and that the notice of removal filed on December 14, 1990, was therefore within the ninety (90) day period provided by 12 U.S.C. § 1441a(Z )(3)(A). RTC admits that it was appointed receiver for City Federal on September 14, 1990, ninety-one (91) days before the removal.

This is a case of first impression within the Eleventh Circuit, and perhaps within the United States. Although one district court in Resolution Trust Corp. v. Key, 733 F.Supp. 1086 (N.D.Tex.1990), has said that the “RTC was substituted as a party on November 10, 1989” (November 10, 1989, being the date upon which the order of substitution was entered by the state court), the said statement was dictum, because in Key ninety (90) days for removal by RTC pursuant to the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), 12 U.S.C. § 1441a (Z)(3)(A), had not elapsed from the date RTC had been appointed receiver. In other words, the actual date of “substitution” for the purpose of triggering the ninety (90) day removal period was not an issue. It was never raised nor discussed in Key, because it was unnecessary to the decision.

Although not dealing with RTC, two district courts have dealt with removals in a way which does shed light on this case. One was a removal by Federal Savings and Loan Insurance Corporation (FSLIC), and the other was a removal by the Federal Deposit Insurance Corporation (FDIC), the latter removal being under FIRREA as was this one. Both courts held that the time for removal began to run from the date of the appointment of the governmental agency as receiver rather than from the agency’s first appearance in the state court proceeding from which the removal was attempted. In American Sav. & Loan Assoc. v. Hoss, 716 F.Supp. 979 (S.D.Tex.1989), the district court said:

[I]n North Mississippi Sav. & Loan v. Hudspeth [756 F.2d 1096 (5th Cir.1985), cert. denied 474 U.S. 1054, 106 S.Ct. 790, 88 L.Ed.2d 768 (1986) ], the Fifth Circuit held that requiring the formal joinder of FSLIC before FSLIC could remove a case would render the pleading process excessively technical. See 756 F.2d at 1100. Thus, FSLIC’s plea in intervention was not a necessary predicate before it could be considered a party to the state court litigation.

716 F.Supp. at 980 (emphasis supplied).

In Federal Deposit Ins. Corp. v. Norwood, 726 F.Supp. 1073 (S.D.Tex.1989), another district court held:

The FIRREA removal provisions specifically exempt FDIC from the general removal requirements in two ways. First, FIRREA provides that FDIC may remove a case “without bond or security.” 12 U.S.C. § 1819(b)(2)(B), as amended by FIRREA, supra, § 209, 1989 U.S.Code Cong. & Admin.News (103 Stat.) at 216. This language is an apparent reference to the former provision of the removal statute that required a bond to be posted upon removal. See 28 U.S.C. § 1446(d), amended by Judicial Improvements and Access to Justice Act of 1988, Pub.L. No. 100-702, tit. 10, § 1016(b), 102 Stat. 4669, 4670.
Second, the FIRREA removal provisions relating to FDIC specifically depart from the general removal statute by allowing FDIC to appeal any order of remand. 12 U.S.C. § 1812(b)(2)(C), as amended by FIRREA, supra, § 209, 1989 U.S.Code Cong. & Admin.News (103 Stat.) at 216. This provision represents a specific departure from the general rule, under 28 U.S.C. § 1447(d) (1982), that “[a]n order remanding a case to the State court from which it was removed is not reviewable on appeal or otherwise.” These specific alterations of the general removal scheme evidence Congress’s intent not to create a FDIC removal power under FIRREA wholly independent of that general process. If FIRREA were intended to establish a wholly independent method of removal, there would have been no need for Congress to enu *916 merate these specific exceptions to the general removal provisions.
Furthermore, FIRREA provides that all actions to which FDIC is a party “shall be deemed to arise under the laws of the United States.” 12 U.S.C. § 1819(b)(2)(A), as amended by FIRREA, supra, § 209, 1989 U.S.Code Cong. & Admin.News (103 Stat.) at 216. This provision evidences an intent to provide the proper jurisdictional “hook” for removal under 28 U.S.C. § 1441(a). For these reasons, the Court finds that Congress drafted the FIRREA removal provisions to supplement, not supplant, the general removal statute. Thus, removals by FDIC under FIRREA remain subject to the 30-day removal limitations period of section 1446(b).
The next issue is whether the 30-day limitations provisions runs from the date of FDIC’s appointment as receiver of a failed depository institution or from the date FDIC formally intervenes or substitutes in the state court proceedings. In this case, the more precise question is whether FDIC complied with the 30-day limitations period by removing concurrently with the filing of a motion to intervene and substitute in the state court proceedings, even though FDIC had been Katy’s receiver for more than 30 days. The relevant removal limitations provision of section 1446(b) provides that “a notice of removal may be filed within thirty days after receipt by the defendant, through service or otherwise, of a copy of an amended pleading, motion, order or other paper from which it may first be ascertained that the case is one which is or has become removable.” 28 U.S.C.A. § 1446(b) (West Supp. 1989).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Resolution Trust Corporation, as Conservator of Carteret Federal Savings Bank, F.A., Plaintiff-Counterclaim-Defendant-Appellant v. Thomas Fragetti Diane Fragetti, Defendants-Counterclaim-Plaintiffs-Appellees, John Doe Jane Doe, Resolution Trust Corporation, as Conservator of Carteret Savings Bank, F.A. And as Receiver of Carteret Savings Bank, F.A. v. Joseph MacChitelli Husband, Francine MacChitelli Wife, Resolution Trust Corporation, in Its Capacity as Conservator of Carteret Federal Savings Bank, F.A. And Its Capacity as Receiver of Carteret Savings Bank, F.A. v. Kazuyuki Kameda, Taneko Kameda, Evergreen at Port St. Lucie Condominium Association, Inc., a Florida Corporation, John Doe and Jane Doe, His Wife or Her Husband, if She or He Are Married, Resolution Trust Corporation, in Its Capacity as Conservator of Carteret Federal Savings Bank, F.A. And in Its Capacity as Receiver of Carteret Savings Bank, F.A. v. Milagros B. Adarna, John Doe and Jane Doe, His Wife or Her Husband, if She or He Are Married, Resolution Trust Corporation, in Its Capacity as Conservator of Carteret Federal Savings Bank, F.A. And in Its Capacity as Receiver of Carteret Savings Bank, F.A. v. Vince Malorni Ruth Malorni Evergreen at Port St. Lucie Condominium Association, Inc., a Florida Corporation, Resolution Trust Corporation, in Its Capacity as Conservator of Carteret Federal Savings Bank, F.A. And in Its Capacity as Receiver of Carteret Savings Bank, F.A. v. Bertie Lowe, Millicent Lowe
49 F.3d 715 (Eleventh Circuit, 1995)
Resolution Trust Corp. v. Fragetti
49 F.3d 715 (Eleventh Circuit, 1995)
Resolution Trust Corp. v. Harrison
871 F. Supp. 523 (D. Massachusetts, 1994)
Tackett v. California Independent Trust Deed
859 F. Supp. 1289 (C.D. California, 1994)
Resolution Trust Corp. v. Fragetti
832 F. Supp. 1521 (M.D. Florida, 1993)
Resolution Trust Corp. v. Eugenio
790 F. Supp. 686 (N.D. Texas, 1991)
Montalvo Santiago v. Resolution Trust Corp.
779 F. Supp. 632 (D. Puerto Rico, 1991)
Resolution Trust Corp. v. Sloan
775 F. Supp. 326 (E.D. Arkansas, 1991)
Resolution Trust Corporation v. Leroy Lightfoot
938 F.2d 65 (Seventh Circuit, 1991)
Resolution Trust Corp. v. Lightfoot
938 F.2d 65 (Seventh Circuit, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
753 F. Supp. 914, 1991 U.S. Dist. LEXIS 278, 1991 WL 1309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/towns-real-estate-appraisal-services-inc-v-resolution-trust-corp-alnd-1991.