Levin v. Miller

Dist. Ct. did not err in dismissing five of seven counts that plaintiff-Trustee for bankrupt holding company filed against defendants-three directors of banks controlled by holding company, alleging that defendants violated certain fiduciary duties by failing to implement financial controls that would have protected holding company from defendants’ financial errors in their roles as directors of said banks. Under 12 USC section 1821(d)(2)(A)(i), said action in these counts belonged to FDIC, which was in process of collecting banks’ assets and paying their debts, since FDIC, as opposed to Trustee, owned any legal claim that depended on actions taken by defendants in their roles as banks’ directors. However, Dist. Ct. erred in dismissing remaining two counts, since those counts pertained to defendants’ conduct directed at holding company, and thus Trustee could properly pursue said claims on behalf of holding company.