Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Palmetto State Bank v. Johnson

United States District Court, D. South Carolina, Aiken Division

September 12, 2017

Palmetto State Bank, Plaintiff,
v.
Akeya Johnson, Defendant,
v.
Federal Deposit Insurance Corporation as Receiver for Allendale County Bank, Counter-Defendant.

          ORDER AND OPINION

         This matter is before the court pursuant to Defendant Akeya Johnson's (“Defendant”) Motion to Amend Answer, Dismiss Counterclaims and Defendant, and Remand. (ECF No. 11.) Plaintiff Palmetto State Bank (“Plaintiff”) and Counter-Defendant Federal Deposit Insurance Corporation (“FDIC-R”) oppose Defendant's Motion. (ECF Nos. 17, 20.) For the reasons set forth below, the court DENIES Defendant's Motion to Amend Answer, Dismiss Counterclaims and Defendant, and Remand (ECF No. 11).

         I. FACTUAL AND PROCEDURAL BACKGROUND

         On April 25, 2014, the South Carolina Commissioner of Banking declared Allendale County Bank (“ACB”) insolvent and appointed FDIC-R as its Receiver. (ECF No. 1-2.) The FDIC-R as Receiver for ACB succeeded to all rights, titles, powers and privileges of ACB pursuant to 12 U.S.C. § 1821(d)(2)(A). (ECF No. 1 at 2.) Also on April 25, 2014, pursuant to a Purchase and Assumption Agreement between the FDIC-R and Plaintiff, Plaintiff purchased certain assets of the failed ACB, including the subject loan, while the FDIC-R retained certain liabilities. (ECF No. 20 at 1.)

         On March 7, 2016, Plaintiff filed a Complaint against Defendant in the Allendale County Magistrate's Court, seeking recovery for the amounts owed under Loan Number XXXXXXX41. (ECF No. 1-4.)

         On June 8, 2016, Defendant filed her Answer and Counterclaims seeking judgment against Plaintiff in an amount in excess of ten thousand dollars ($10, 000) and, consequently seeking removal of the matter to the state circuit court based on the amount in controversy exceeding the jurisdictional limit of the Magistrate's Court. (ECF No. 2.) Plaintiff timely replied. (ECF No. 20 at 2.) As a result, the matter was transferred to the Allendale County Court of Common Pleas, Case No. 2016-CP-03-00143 (“State Court Action”). See id.

         Subsequently, based upon the FDIC-R's indemnification obligation to Plaintiff in relation to Defendant's claims and its interest in the disposition of the receivership assets, FDIC-R filed on August 11, 2016, its Motion to Join or, Alternatively, to Intervene in the State Court Action. (ECF No. 4.) Pursuant to the Consent Order Joining and Substituting FDIC-R, filed October 3, 2016 in the State Court Action, FDIC-R was joined to the action and substituted as the proper defendant to Defendant's counterclaims. (ECF No. 4-1.)

         On December 2, 2016, FDIC-R removed the action to this court pursuant to 12 U.S.C. § 1819 (b)(2)(A) (any civil suit in which the FDIC, in any capacity, is a party is “deemed to arise under the laws of the United States”) and 12 U.S.C. § 1819(b)(2)(B) (“. . . the Corporation may. . . remove any action, suit or proceeding from a State court to the appropriate United States district court before the end of the 90-day period beginning on the date the . . . Corporation is substituted as a party”). (ECF No. 1.)

         On January 2, 2017, Defendant filed a Motion to Amend Answer, Dismiss Counterclaims and FDIC-R, and Remand, asserting FDIC-R is no longer a party in interest, due to Defendant dismissing all counterclaims in her proposed amended Answer. (ECF No. 11.)

         On January 17, 2017, Plaintiff filed an Opposition to Defendant's Motion to Amend Answer, Dismiss Counterclaims and Defendant, and Remand, asserting (1) Defendant has waived her right to seek dismissal of FDIC-R, (2) FDIC-R is a proper and necessary party regardless of whether Defendant labels her allegations as counterclaims or affirmative defenses, (3) even if FDIC-R is dismissed as a party, federal jurisdiction still exists, and (4) strong public policy concerns require the denial of the Motion. (ECF No. 17.)

         On January 17, 2017, FDIC-R filed its Opposition to Defendant's Motion to Amend Answer, Dismiss Counterclaims and Defendant, and Remand, asserting (1) FDIC-R is a real party in interest and must remain a party to the action, and (2) even if FDIC-R is dismissed as a party, federal jurisdiction still exists. (ECF No. 20.)

         II. LEGAL STANDARD

         Federal courts are courts of limited jurisdiction. A defendant is permitted to remove a case to federal court if the court would have original jurisdiction over the matter. 28 U.S.C. § 1441(a) (2012). A federal district court has “original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331. Any civil suit in which the FDIC, in any capacity, is a party is “deemed to arise under the laws of the United States.” 12 U.S.C. § 1819(b)(2)(A); see also Bullion Servs, Inc., v. Valley State Bank, 50 F.3d 705, 707 (9th Cir. 1995). Additionally, when the FDIC is a party, the entire action is deemed to arise under the laws of the United States. See Fed. Deposit Ins. Corp., 58 F.3d 1041, 1045 (4th Cir. 1995).

         Further, the FDIC has a statutory right in each case in which it is a party to remove a case from state court to federal court pursuant to the Financial Institution Reform, Recovery and Enforcement Act of 1989, Pub. L. No. 101-73, § 209, 103 State. 1983 et seq. Specifically, the FDIC has 90 days from the date it is substituted as a party to remove the action from state court to the appropriate United States district court. 12 U.S.C. § 1819(b)(2)(B).

         III. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.