Wednesday, May 31, 2006

Seventh Circuit Finds No SMJ Under FIRREA for Untimely Filed Claims

Per Maher v. F.D.I.C., 441 F.3d 522 (7th Cir. Mar. 21, 2006):

Under [Financial Institutions Reform Recovery and Enforcement Acts (FIRREA)], a claimant can file an administrative claim with the receiver, which then has 180 days to allow or deny the claim. If the receiver denies or does not render a decision within 180 days, the claimant has 60 days to file suit. Federal courts lack jurisdiction to address claims that fail to comply with FIRREA's administrative claims process. 12 U.S.C. ยง 1821(d)(6)(A); Maher, 75 F.3d at 1190-91; Capitol Leasing Co. v. F.D.I.C., 999 F.2d 188, 193 (7th Cir.1993). Maher and Gravee [vice-president and president of First Federal Savings and Loan of Wilmette, Illinois] filed this lawsuit [seeking pension trust funds from their employment with a failed bank] more than a year after the termination of the receivership and more than a decade after they claimed to have filed administrative claims on April 12, 1990. Thus, since they failed to comply with the administrative procedures, FIRREA does not provide subject matter jurisdiction over these claims.


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