Hanson v. F.D.I.C.

• Decision Date: 14 May 1997
• Docket Number: Nos. 96-2091,96-2514,s. 96-2091
• Citation: 113 F.3d 866
• Parties: Steven D. HANSON, Appellant, v. FEDERAL DEPOSIT INSURANCE CORPORATION, as receiver for the New Bank of New England, N.A., Appellee. FEDERAL DEPOSIT INSURANCE CORPORATION, as receiver for the New Bank of New England, N.C., substituted as plaintiff for the New Bank of New England, N.A., Appellee, v. Steven D. HANSON, Appellant.
• Court: U.S. Court of Appeals — Eighth Circuit

Page 866

113 F.3d 866

Steven D. HANSON, Appellant, v. FEDERAL DEPOSIT INSURANCE CORPORATION, as receiver for the

New Bank of New England, N.A., Appellee.

FEDERAL DEPOSIT INSURANCE CORPORATION, as receiver for the

New Bank of New England, N.C., substituted as

plaintiff for the New Bank of New

England, N.A., Appellee, v. Steven D. HANSON, Appellant.

Nos. 96-2091, 96-2514.

United States Court of Appeals,

Eighth Circuit.

Submitted March 10, 1997.

Decided May 14, 1997.

James P. Larkin, Bloomington, Minnesota, argued for appellant.

Marta W. Berkley, Washington, DC, argued for appellee (Ann S. Duross and Colleen B. Bombardier, on the brief), for appellee.

Before MAGILL, ¹ JOHN R. GIBSON, and MURPHY, Circuit Judges.

MAGILL, Circuit Judge.

This appeal arises from a collection action brought by the Bank of New England (BNE) against Steven D. Hanson and Hanson Industries, Inc. (Hanson Industries) for an alleged default on a revolving loan agreement. Hanson appeals the district court's ² grant of summary judgment to the Federal Deposit Insurance Corporation (FDIC), as receiver for BNE, on several lender liability counterclaims raised by Hanson in BNE's collection action. Hanson also appeals the district court's grant of summary judgment to the FDIC, as receiver for the New Bank of New England (New BNE), in a related constructive trust action brought by Hanson. We affirm.

I.

On July 16, 1985, BNE and Hanson Industries, a Minnesota corporation in which Hanson held a majority interest, entered into a revolving loan agreement that was personally guaranteed by Hanson. The loan was also secured by a mortgage agreement granting BNE a second mortgage in real property owned by Hanson. In August 1986, BNE filed a claim in Minnesota state court against both Hanson and Hanson Industries to collect on an alleged default. Denying the default, Hanson and Hanson Industries filed several counterclaims against BNE, asserting tort and breach-of-contract claims arising out of the alleged default. ³

In August 1987, First Brookdale State Bank (First Brookdale), another of Hanson's creditors, commenced foreclosure proceedings against a portion of Hanson's real property. BNE was the second mortgagee of this property pursuant to BNE's revolving loan agreement with Hanson Industries and Hanson. BNE later redeemed this property from First Brookdale on August 17, 1988. BNE then initiated proceedings in Minnesota state court to obtain new certificates of title for the real property.

On July 10, 1989, the Minnesota state court consolidated BNE's August 1986 collection action and BNE's August 1987 title action into a single proceeding. The state court then directed the Minnesota Examiner of Titles, on November 13, 1989, to determine whether new certificates of title for the property should be issued. The Examiner recommended that new certificates of title be issued to BNE. Hanson objected that the issuance of new certificates should be stayed pending resolution of Hanson's counterclaims against BNE. Over Hanson's objection, the state court adopted the Examiner's recommendation on July 13, 1990, and issued new certificates of title to BNE. The state court set a hearing in BNE's collection action for February 11, 1991.

On January 6, 1991, prior to the hearing, the United States Comptroller of Currency declared BNE insolvent and placed BNE in receivership. The FDIC was appointed receiver of BNE pursuant to 12 U.S.C. § 1821(c) (Supp. II 1990). The FDIC established New BNE as a bridge bank, pursuant to 12 U.S.C. § 1821(n) (Supp. II 1990), to purchase certain assets of BNE, including the real property formerly owned by Hanson.

Because BNE had been placed in receivership, BNE's collection action, including Hanson's counterclaims, was removed to the district court on January 30, 1991. Pursuant to 12 U.S.C. § 1821(d)(12) (Supp. II 1990), the FDIC received a stay of the collection action on March 29, 1991. Hanson then filed his counterclaims with the FDIC as required under 12 U.S.C. § 1821(d)(3)-(13) (Supp. II 1990).

On July 5, 1991, the FDIC mailed a letter to Hanson's counsel, informing him that the FDIC was denying Hanson's counterclaims. In the letter, the FDIC informed Hanson's counsel that:

If you wish to contest this decision, the sole available procedure for review of this determination is to file suit on such claim (or continue an action commenced before the appointment of the Receiver) in the United States District Court.... Such action must be commenced before the end of the 60-day period beginning on the date of this notice, pursuant to 12 U.S.C. § 1821(d)(6)(B). If such action is not taken by that date, the determination of the FDIC to disallow such claim shall be final, and there shall be no further rights or remedies with respect to such claim.

I J.A. at 222.

Notwithstanding the FDIC's letter, Hanson did not file suit or continue an action within sixty days. Instead, on August 30, 1991, Hanson requested that the FDIC provide administrative review of its denial of his claim. On September 12, 1991, the FDIC telephoned Hanson's counsel and informed him that the FDIC did not have any procedures in place for administrative review. The FDIC stated further that it would not perform such a review.

On November 18, 1991, Hanson filed an action against New BNE in the district court, claiming that New BNE was unjustly enriched when it took title to the real property that Hanson had formerly owned. ⁴ Hanson asked the district court to impose a constructive trust pursuant to Minnesota law on the real property.

In early 1992, the FDIC moved for summary judgment on Hanson's counterclaims from the collection action and for summary judgment in the constructive trust action. On September 21, 1992, the district court granted the FDIC's motions. Federal Deposit Ins. Corp. v. Hanson, 799 F.Supp. 954, 960 (D.Minn.1992). Hanson appealed the grant of summary judgment on the constructive trust claim. This Court reversed and remanded on the ground that "the district court based its grant of summary judgment on an overly broad interpretation of the D'Oench, Duhme & Co. v. Federal Deposit Ins. Co., 315 U.S. 447, 62 S.Ct. 676, 86 L.Ed. 956 (1942) doctrine and its statutory progeny...." Hanson v. Federal Deposit Ins. Corp., 13 F.3d 1247, 1253 (8th Cir.1994).

On March 28, 1996, the district court again granted the FDIC summary judgment on the constructive trust claim, but this time the district court held that Hanson's constructive trust claim was barred by issue preclusion. Order (Mar. 28, 1996) at 10. In addition, on May 28, 1996, the district court entered a final judgment granting the FDIC summary judgment on Hanson's counterclaims in the collection action. The district court held that Hanson was barred from seeking judicial review because he failed to seek review in the manner and time prescribed by 12 U.S.C. § 1821(d)(6). See Order at 7 (citing Hanson, 799 F.Supp. at 959). Hanson appeals.

II.

Hanson argues that, because his August 30, 1991 request for administrative review satisfied the jurisdictional requirements set forth in 12 U.S.C. § 1821(d)(6)(B), the district court has jurisdiction to review his counterclaims in the collection action. We disagree.

We review the district court's grant of summary judgment to the FDIC de novo. See McCormack v. Citibank, N.A., 100 F.3d 532, 537 (8th Cir.1996). Summary judgment is appropriate only if the record, viewed in the light most favorable to the nonmoving party, presents no genuine issues of material fact and the moving party is entitled to judgment as a matter of law. Id.; see also Fed.R.Civ.P. 56(c). Furthermore, "[w]e may affirm on any ground supported by the record." Doe v. Norwest Bank Minnesota, N.A., 107 F.3d 1297, 1301 (8th Cir.1997).

Hanson's appeal turns on the meaning of § 1821(d)(6)(B). Specifically, § 1821(d)(6)(B) provides:

If any claimant fails to--

(i) request administrative review of any claim in accordance with subparagraph (A) or (B) of paragraph (7); or

(ii) file suit on such claim (or continue an action commenced before the appointment of the receiver),

before the end of the 60-day period described in subparagraph (A), the claim shall be deemed to be disallowed (other than any portion of such claim which was allowed by the receiver) as of the end of such period, such disallowance shall be final, and the claimant shall have no further rights or remedies with respect to such claim.

12 U.S.C. § 1821(d)(6)(B) (emphasis added).

Thus, the failure of a claimant to satisfy the requirements of § 1821(d)(6)(B) within the prescribed time period bars the claimant from seeking judicial review of his claim. See Capital Data Corp. v. Capital Nat'l Bank, 778 F.Supp. 669, 674 (S.D.N.Y.1991); cf. Praxis Properties, Inc. v. Colonial Sav. Bank, 947 F.2d 49, 63 n. 13 (3d Cir.1991) (citing § 1821(d)(6)(B), to hold that "[i]f within 60 days the claimant fails to pursue one of the above three routes authorized by § 1821(d)(6)(A) [and again enumerated in § 1821(d)(6)(B) ]" then the denial of his claim "becomes a final determination"). It is undisputed that Hanson did not file suit or continue an action within the relevant 60-day period. Thus, he did not meet the requirements of § 1821(d)(6)(B)(ii). Instead, Hanson argues that his August 30, 1991 request for administrative review satisfied the statutory requirements of § 1821(d)(6)(B)(i). Hanson argues that by satisfying § 1821(d)(6)(B)(i), he was able to satisfy the requirements of § 1821(d)(6)(B) as a whole and thereby preserve his right to judicial review.

We conclude that Hanson did not meet the requirement of § 1821(d)(6)(B)(i) that his request for administrative review be "in accordance with subparagraph (A) or (B) of paragraph (7) ...." 12 U.S.C. § 1821(d)(6)(B)(i). Paragraph 7(A) provides that:

If any claimant requests review under this subparagraph in lieu of filing or continuing any action under paragraph (6) and the Corporation agrees to...