Case Law Bank of Am., N. A. v. Fed. Deposit Ins. Corp.

Bank of Am., N. A. v. Fed. Deposit Ins. Corp.

Document Cited Authorities (75) Cited in (22) Related

908 F.Supp.2d 60

BANK OF AMERICA, N. A., As Indenture Trustee, Custodian, and Collateral Agent for Ocala Funding, LLC, Plaintiff and Counterclaim Defendant,

v.FEDERAL DEPOSIT INSURANCE CORPORATION, in its capacity as the Receiver for Colonial Bank, and in its capacity as the Receiver for Platinum Community Bank, Defendant and Counterclaim Plaintiff.

Civil Action No. 10–CV–1681 (BJR).

United States District Court, District of Columbia.

Dec. 10, 2012.

OPINION TEXT STARTS HERE

Frank E. Emory, Jr., Patrick L. Robson, Hunton & Williams LLP, Charlotte, NC, Alissa Branham, Gregory D. Phillips, Marc T.G. Dworsky, Michael J. O'Sullivan, Richard C. St. John, Munger, Tolles & Olson, LLP, Los Angeles, CA, Bonnie K. Arthur, Hunton & Williams LLP, Washington, DC, Joseph J. Saltarelli, Michael B. Kruse, Hunton & Williams LLP, New York, NY, Kristin Linsley Myles, Sarala V. Nagala, Munger, Tolles & Olson LLP, San Francisco, CA, for Plaintiff and Counterclaim Defendant.

Athanasios Basdekis, Michael L. Murphy, Benjamin L. Bailey, Christopher S. Morris, Bailey & Glasser, LLP, Charleston, WV, for Defendant and Counterclaim Plaintiff.

MEMORANDUM OPINION ON CROSS MOTIONS TO DISMISS

BARBARA JACOBS ROTHSTEIN, District Judge.

+---------------------------------------------------+
¦I. ¦INTRODUCTION                              ¦68  ¦
+---+------------------------------------------+----¦
¦   ¦                                          ¦    ¦
+---+------------------------------------------+----¦
¦II.¦SUMMARY OF THE CASE                       ¦69  ¦
+---------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦A.  ¦Overview of TBW's Operation                               ¦69     ¦
+----+----+----------------------------------------------------------+-------¦
¦    ¦B.  ¦Factual Background Common to All Claims                   ¦70     ¦
+----+----+----------------------------------------------------------+-------¦
¦    ¦D.  ¦Factual Allegations Specific to BOA's Claims Against the  ¦72     ¦
¦    ¦    ¦FDIC                                                      ¦       ¦
+----+----+----------------------------------------------------------+-------¦
¦    ¦E.  ¦Factual Allegations Specific to the FDIC's Counterclaims  ¦74     ¦
¦    ¦    ¦Against BOA                                               ¦       ¦
+----------------------------------------------------------------------------+

+-------------------------------------------------------------------+
¦    ¦                                                       ¦      ¦
+----+-------------------------------------------------------+------¦
¦III.¦PROCEDURAL HISTORY                                     ¦75    ¦
+----+-------------------------------------------------------+------¦
¦    ¦                                                       ¦      ¦
+----+-------------------------------------------------------+------¦
¦IV. ¦DISCUSSION                                             ¦76    ¦
+-------------------------------------------------------------------+

+------------------------------------------------------------------+
¦    ¦A. ¦Standards of Review                               ¦76    ¦
+----+---+--------------------------------------------------+------¦
¦    ¦B. ¦The FDIC's Motion to Dismiss the Amended Complaint¦77    ¦
+------------------------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦1. ¦Whether This Court Has Subject Matter Jurisdiction    ¦78     ¦
¦    ¦    ¦   ¦over BOA's Claims                                     ¦       ¦
+----------------------------------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦   ¦a. ¦Whether BOA Exhausted the Administrative Remedies ¦78     ¦
¦    ¦    ¦   ¦   ¦under FIRREA on behalf of Ocala                   ¦       ¦
+----+----+---+---+--------------------------------------------------+-------¦
¦    ¦    ¦   ¦b. ¦Whether BOA Has Standing to Bring Claims on Behalf¦83     ¦
¦    ¦    ¦   ¦   ¦of DB and BNP                                     ¦       ¦
+----------------------------------------------------------------------------+

+---------------------------------------------------------------------------+
¦    ¦    ¦   ¦   ¦i. ¦Whether DB and BNP Have Article III Standing ¦83     ¦
+----+----+---+---+---+---------------------------------------------+-------¦
¦    ¦    ¦   ¦   ¦ii.¦Whether BOA Can Pursue the Claims on Behalf  ¦85     ¦
¦    ¦    ¦   ¦   ¦   ¦of DB and BNP                                ¦       ¦
+---------------------------------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦   ¦c. ¦Whether Counts IX, X, and XI Have Been            ¦86     ¦
¦    ¦    ¦   ¦   ¦Administratively Exhausted under FIRREA           ¦       ¦
+----------------------------------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦2. ¦Whether the Amended Complaint States a Claim for      ¦86     ¦
¦    ¦    ¦   ¦Fraudulent Transfer                                   ¦       ¦
+----+----+---+------------------------------------------------------+-------¦
¦    ¦    ¦3. ¦Whether the Amended Complaint Pleads Fraud with       ¦90     ¦
¦    ¦    ¦   ¦theRequisite Specificity                              ¦       ¦
+----------------------------------------------------------------------------+

+---------------------------------------------------------------+
¦    ¦C. ¦BOA's Motion to Dismiss the FDIC's Counterclaims¦91   ¦
+---------------------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦1. ¦Whether the Counterclaims are Barred by the           ¦93     ¦
¦    ¦    ¦   ¦Exculpatory Clauses                                   ¦       ¦
+----+----+---+------------------------------------------------------+-------¦
¦    ¦    ¦2. ¦Whether the Counterclaims State a Claim for Breach of ¦96     ¦
¦    ¦    ¦   ¦the Custodial Agreement                               ¦       ¦
+----------------------------------------------------------------------------+

+-----------------------------------------------------+
¦   ¦   ¦  ¦a.¦Counterclaim 1                    ¦96  ¦
+---+---+--+--+----------------------------------+----¦
¦   ¦   ¦  ¦b.¦Counterclaim 2                    ¦97  ¦
+---+---+--+--+----------------------------------+----¦
¦   ¦   ¦  ¦c.¦Counterclaim 3                    ¦98  ¦
+---+---+--+--+----------------------------------+----¦
¦   ¦   ¦  ¦d.¦Counterclaim 4                    ¦98  ¦
+---+---+--+--+----------------------------------+----¦
¦   ¦   ¦  ¦e.¦Counterclaim 5                    ¦99  ¦
+-----------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦3. ¦Whether the Breach of Bailment Counterclaims Fail as a¦100    ¦
¦    ¦    ¦   ¦Matter of Law                                         ¦       ¦
+----------------------------------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦   ¦a. ¦Whether the Bailee Letters Are Enforceable        ¦101    ¦
¦    ¦    ¦   ¦   ¦Contracts between Colonial and BOA                ¦       ¦
+----+----+---+---+--------------------------------------------------+-------¦
¦    ¦    ¦   ¦b. ¦Whether the Breach of Bailment Counterclaims State¦106    ¦
¦    ¦    ¦   ¦   ¦a Claim for Relief                                ¦       ¦
+----------------------------------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦4. ¦Whether the Tort Counterclaims Fail As a Matter of Law¦107    ¦
+----------------------------------------------------------------------------+

+----------------------------------------------------------------------------+
¦    ¦    ¦   ¦a. ¦Whether the Economic Loss Doctrine Bars the Tort  ¦107    ¦
¦    ¦    ¦   ¦   ¦Claims                                            ¦       ¦
+----+----+---+---+--------------------------------------------------+-------¦
¦    ¦    ¦   ¦b. ¦Whether the Custodial Agreement Limits BOA's Tort ¦108    ¦
¦    ¦    ¦   ¦   ¦Liability                                         ¦       ¦
+----------------------------------------------------------------------------+

+-----------------------------------+
¦  ¦                            ¦   ¦
+--+----------------------------+---¦
¦V.¦CONCLUSION                  ¦108¦
+-----------------------------------+
I. INTRODUCTION

Before the Court are two motions to dismiss. First, Defendant and Counterclaimant Federal Deposit Insurance Corporation (the “FDIC”), in its capacity as the Receiver for both Colonial Bank (“Colonial”) and Platinum Community Bank (“Platinum”), moves to dismiss the First Amended Complaint pursuant to Federal Rule of Civil Procedure 12(b)(1) and (6). (Dkt. No. 26.). Second, Plaintiff and Counterclaim–Defendant Bank of America, N.A., (“BOA”) moves to dismiss the FDIC's Counterclaims pursuant to Rule 12(b)(6). (Dkt. No. 36.). Having considered the parties' arguments, pleadings, and the relevant case law, the court is fully advised. For the reasons set forth below:

IT IS HEREBY ORDERED that each motion is GRANTED in part and DENIED in part.

II. SUMMARY OF THE CASE

This dispute is the result of a multi-billion dollar fraudulent scheme that left the financial sector reeling. The scheme was orchestrated by Lee Farkas, the former chairman of Taylor, Bean & Whitaker Mortgage Corp. (“TBW”), with the aid of several bank employees from Colonial and Platinum.1 It stemmed from TBW's loan origination business, which started...

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N. Am. Butterfly Ass'n v. Nielsen
"... ... 82 Fed. Reg. 8793, 8794. On February 20, 2017, former DHS ... 2130, 119 L.Ed.2d 351 (1992) ; see also Bank of America, N.A. v. FDIC, 908 F.Supp.2d 60, 76 (D.D.C ... Cir. 2003) (quoting Ins. Corp. of Ir., Ltd. v. Compagnie des Bauxites de Guinee, ... "
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Scruggs v. Bureau of Engraving & Printing, Civil Case No. 15-2205 (RJL)
"... ... , 339 F.3d 970, 971 (D.C.Cir.2003) (quoting Ins. Corp. of Ir., Ltd. v. Compagnie des Bauxites de ... whether it has jurisdiction in the case." Bank of America, N.A. v. FDIC , 908 F.Supp.2d 60, 76 ... See also Lineberry v. Fed. Bureau of Prisons, 923 F.Supp.2d 284, 291 ... "
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Alkasabi v. Wash. Mut. Bank, F.A.
"... ... Mutual Bank (together, “WAMU”), and the Federal Deposit Insurance Corporation (“FDIC”), as receiver for WAMU, ... Kreindler & Kreindler v. United Techs. Corp., 985 F.2d 1148, 1155–56 (2d Cir.1993) ). On a motion ... Guardian Life Ins. Co. of America, 511 U.S. 375, 377, 114 S.Ct. 1673, 128 ... See 12 U.S.C. § 1821(d)(3)-(13) Am. Nat'l Ins. Co. v. FDIC, 642 F.3d 1137, 1141 ... See Elmco Props., Inc. v. Second Nat'l Fed. Sav. Assoc., 94 F.3d 914, 921–22 (4th Cir.1996) (a ... "
Document | U.S. District Court — District of Columbia – 2012
Himmelstein v. Comcast of the Dist., L.L.C.
"... ... a Rule 12(b)(6) motion, Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, ... See Burnsed Oil Co. Inc. v. Grynberg, 320 Fed.Appx. 222, 230 (5th Cir.2009) (applying ... v. Bank of Nova Scotia, 842 F.2d 47, 53 (3d Cir.1988); ... 1994) (adopting economic-loss doctrine); RLI Ins. Co. v. Pohl, Inc. of America, 468 F.Supp.2d 91, ... "

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5 cases
Document | U.S. Bankruptcy Court — Eastern District of Pennsylvania – 2014
Finkel v. Polichuk (In re Polichuk)
"... ...          The Bank of America Account Transfers C.          ... Corp. I, 365 B.R. 293, 301–02 (Bankr.D.D.C.2006); ... for the entry of summary judgment under Fed.R.Civ.P. 56, incorporated into bankruptcy ... v. Fireman's Fund Ins. Co., 868 F.Supp. 1278, 1287 n. 5 (D.Utah 1994) ...          For several reasons, I am persuaded by the rationale given by the courts ... statement for June 2005, which shows a deposit of $89,145.43 on June 20, 2005 and the subsequent ... "
Document | U.S. District Court — District of Columbia – 2019
N. Am. Butterfly Ass'n v. Nielsen
"... ... 82 Fed. Reg. 8793, 8794. On February 20, 2017, former DHS ... 2130, 119 L.Ed.2d 351 (1992) ; see also Bank of America, N.A. v. FDIC, 908 F.Supp.2d 60, 76 (D.D.C ... Cir. 2003) (quoting Ins. Corp. of Ir., Ltd. v. Compagnie des Bauxites de Guinee, ... "
Document | U.S. District Court — District of Columbia – 2016
Scruggs v. Bureau of Engraving & Printing, Civil Case No. 15-2205 (RJL)
"... ... , 339 F.3d 970, 971 (D.C.Cir.2003) (quoting Ins. Corp. of Ir., Ltd. v. Compagnie des Bauxites de ... whether it has jurisdiction in the case." Bank of America, N.A. v. FDIC , 908 F.Supp.2d 60, 76 ... See also Lineberry v. Fed. Bureau of Prisons, 923 F.Supp.2d 284, 291 ... "
Document | U.S. District Court — District of Columbia – 2014
Alkasabi v. Wash. Mut. Bank, F.A.
"... ... Mutual Bank (together, “WAMU”), and the Federal Deposit Insurance Corporation (“FDIC”), as receiver for WAMU, ... Kreindler & Kreindler v. United Techs. Corp., 985 F.2d 1148, 1155–56 (2d Cir.1993) ). On a motion ... Guardian Life Ins. Co. of America, 511 U.S. 375, 377, 114 S.Ct. 1673, 128 ... See 12 U.S.C. § 1821(d)(3)-(13) Am. Nat'l Ins. Co. v. FDIC, 642 F.3d 1137, 1141 ... See Elmco Props., Inc. v. Second Nat'l Fed. Sav. Assoc., 94 F.3d 914, 921–22 (4th Cir.1996) (a ... "
Document | U.S. District Court — District of Columbia – 2012
Himmelstein v. Comcast of the Dist., L.L.C.
"... ... a Rule 12(b)(6) motion, Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, ... See Burnsed Oil Co. Inc. v. Grynberg, 320 Fed.Appx. 222, 230 (5th Cir.2009) (applying ... v. Bank of Nova Scotia, 842 F.2d 47, 53 (3d Cir.1988); ... 1994) (adopting economic-loss doctrine); RLI Ins. Co. v. Pohl, Inc. of America, 468 F.Supp.2d 91, ... "

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