Federal Deposit Ins. Corp. v. Rectenwall, Civ. No. 556.

CourtUnited States District Courts. 7th Circuit. United States District Court of Northern District of Indiana
Citation97 F. Supp. 273
Docket NumberCiv. No. 556.
Decision Date30 April 1951

Kennerk & Dumas, Fort Wayne, Ind., for plaintiff.

Hunt & Mountz, Fort Wayne, Ind., Atkinson & Sanders, Auburn, Ind., for defendant.

SWYGERT, District Judge.

The complaint, to which the defendant has directed a motion to dismiss for failure to state a claim, alleges that the defendant, as cashier of the Farmers and Merchants State Bank of Spencerville, Indiana, "did illegally, wrongfully, fraudulently and negligently pay or cause to be paid" to certain designated persons "funds of the Bank to which they were not entitled, by means of paying checks presented to the Bank and drawn by them on their respective accounts in the Bank when, in truth and in fact, the * * * parties did not have funds on deposit in their respective accounts sufficient to pay said checks." The complaint further alleges that the plaintiff is the assignee of this cause of action through its purchase, pursuant to 12 U.S.C.A. § 264(n) (4), of the unacceptable assets of the Spencerville bank, including this claim, in order to enable another insured bank to assume its deposit liabilities.

In his motion to dismiss, the defendant first urges that the well-recognized rule at common law that actions for personal torts are not assignable prevents the maintenance of this suit by the plaintiff. The plaintiff maintains, however, that it acquired this cause of action as an incident to a right of property, referring presumably to the other assets acquired by the plaintiff by its purchase, and thus that its right to bring this suit is controlled by the decision in Traer v. Clews, 1885, 115 U.S. 528, 6 S.Ct. 155, 29 L.Ed. 467. In view of the position which is taken, this contention need not be considered, other than to note that there are some substantial differences in the facts of that case and those of the case at bar.

At the outset it must be recalled that this question, like all others presented in actions in which the Federal Deposit Insurance Corporation is a party, is governed by federal and not state law. 12 U.S.C. § 264(j) Fourth; D'Oench, Duhme Co. v. F. D. I. C., 1942, 315 U.S. 447, 62 S.Ct. 676, 86 L.Ed. 956. As was stated in United States v. Allegheny County, 1944, 322 U.S. 174, 183, 64 S.Ct. 908, 913, 88 L.Ed. 1209: "The validity and construction of contracts through which the United States is exercising its constitutional functions, their consequences on the rights and obligations of the parties, the titles or liens which they create or permit, all present questions of federal law not controlled by the law of any state."

As a matter of federal law, however, the procedure employed here by the plaintiff has not been the subject of very extensive judicial consideration. Although in the only case found in which an assignment of a claim of this type was involved its validity was recognized, the court there apparently did not have before it the question of the assignability of such a claim as an action ex delicto. Brown v. New York Life Ins. Co., 9 Cir., 1945, 152 F.2d 246.

If it is conceded for present purposes that a claim of this type was non-assignable at common law, there yet remains, however, the question of whether this principle has been changed by the statutory procedure which the plaintiff here employed. Section 264(n) (4), under which the plaintiff acted, provides in part: "Whenever in the judgment of the board of directors such action will reduce the risk or avert a threatened loss to the Corporation and * * * will facilitate the sale of the assets of an open or closed insured bank to and assumption of its liabilities by another insured bank * * * the Corporation may purchase any such assets * * *." (Emphasis supplied.)...

To continue reading

Request your trial
17 cases
  • In re Anjopa Paper & Board Manufacturing Co., 93218.
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • 6 de abril de 1967
    ...State or Federal," (12 U.S.C. § 1819) the substantive law to be applied in such suits is a "federal question." F.D.I.C. v. Rectenwall, 97 F. Supp. 273 (N.D.Indiana 1951). "A federal court sitting in a non-diversity case * * * does not sit as a local tribunal. In some cases it may see fit fo......
  • Federal Deposit Ins. Corp. v. Martinez Almodovar, Civ. No. 80-1551(PG)
    • United States
    • United States District Courts. 1st Circuit. District of Puerto Rico
    • 24 de agosto de 1987
    ...Brown v. New York Life Ins. Co., 152 F.2d 246 (9th Cir.1945); Lamberton v. FDIC, 141 F.2d 95 (3rd Cir. 1944); FDIC v. Rectenwall, 97 F.Supp. 273 (N.D.Ind.1951); FDIC v. Abraham, 439 F.Supp. 1150 (E.D.La.1977); see also, FDIC v. La Rambla Shopping Center, Inc., 791 F.2d 215, 218-220 (1st Abs......
  • Federal Deposit Ins. Corp. v. Lattimore Land Corp., 80-7635
    • United States
    • United States Courts of Appeals. United States Court of Appeals (5th Circuit)
    • 14 de setembro de 1981
    ...Meo, 505 F.2d 790, 793 n.4 (9th Cir. 1974); Riverside Park Realty Co. v. FDIC, 465 F.Supp. 305, 308 (M.D.Tenn.1978); FDIC v. Rectenwall, 97 F.Supp. 273, 274 (N.D.Ind.1951); 12 U.S.C.A. § 1819 (Fourth). As Justice Jackson stated:This case is not entertained by the federal courts because of d......
  • Federal Deposit Ins. Corp. v. Bank of Boulder, 86-1071
    • United States
    • United States Courts of Appeals. United States Court of Appeals (10th Circuit)
    • 20 de agosto de 1990
    ...Inc. v. FDIC, 651 F.2d 355, 358 (5th Cir.1981), cert. denied, 456 U.S. 972, 102 S.Ct. 2234, 72 L.Ed.2d 845 (1982); FDIC v. Rectenwall, 97 F.Supp. 273 (N.D.Ind.1951). In Rectenwall, the court found that a tort claim that was nonassignable under state law could be transferred to FDIC/Corporat......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT