Veluchamy v. Fed. Deposit Ins. Corp.

Federal 7th Circuit Court
Civil Court
Citation
Case Number: 
No. 10-3879
Decision Date: 
February 4, 2013
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
In Administrative Procedure Act (APA) seeking monetary recovery arising out of allegations that defendant-FDIC-Corporate misled plaintiffs-owners of bank into making further investment of $30 million in effort to rescue bank from insolvency and also prevented plaintiffs from converting said investment into personal deposits accounts so that they could obtain deposit-level priority in post-insolvency distribution scheme, Dist. Ct. did not err in dismissing said cause of action where APA prohibited plaintiffs from seeking monetary damages against said defendant. Moreover, plaintiffs could not assert similar FIRREA claim against FDIC-Receiver seeking recovery for its separate denial of plaintiff’s request to convert their $30 million further investment into personal deposit accounts, since said claim was not against bank, but rather was against FDIC in its regulatory capacity, which is not recognized as valid claim under section 1821(d) of FIRREA.