Seaway Bank and Trust Co. v. J & A Series I, LLC Series C

Dist. Ct. did not err in dismissing (for failure to exhaust remedies under FIRREA mandatory claims process) defendants’ petition to quash service in state-court foreclosure action filed by failed bank now under receivership by FDIC. While defendants asserted in petition that service of process in foreclosure action had been defective and that state-court lacked personal jurisdiction over defendants so as to render void foreclosure order against defendants, dismissal of petition was appropriate because defendants had failed to submit any claim to FDIC by submission deadline set forth in FDIC notice to defendants. Ct. rejected defendants’ contention that mandatory claims process did not apply to them because their petition did not seek financial restitution, since: (1) defendants’ petition constituted “claim” against failed bank; and (2) 12 USC section 1821(d)(13)(D)(ii) precluded Dist. Ct. from reviewing claims “relating to any act or omissions” of failed bank or of FDIC as receiver of failed bank, unless said claims had been first subjected to FIRREA’s administrative claims process.