From Casetext: Smarter Legal Research

Horizon Bank v. St. Paul Mercury Insurance Company

United States District Court, M.D. Florida, Tampa Division
Sep 24, 2010
Case No. 8:10-cv-1977-T-24-EAJ (M.D. Fla. Sep. 24, 2010)

Opinion

Case No. 8:10-cv-1977-T-24-EAJ.

September 24, 2010


ORDER


This cause comes before the Court on Plaintiff Horizon Bank's Motion to Substitute Federal Deposit Insurance Corporation ("FDIC") as Receiver for Horizon Bank and to Stay Proceedings. (Doc. No. 7). Defendant St. Paul Mercury Insurance Company does not oppose this motion. (Doc. No. 7 ¶ 5).

Plaintiff first requests this Court to enter an order substituting the FDIC as Plaintiff. On September 7, 2010, Defendant removed this case to this Court. (Doc. No. 1). Three days later, the Florida Office of Financial Regulation filed an Emergency Petition declaring Horizon Bank imminently insolvent under Florida Statute § 655.005 and requesting the FDIC be appointed as receiver for Horizon Bank pursuant to Florida Statute § 658.81. (Doc. No. 7 Ex. A). On September 10, 2010, the Circuit Court of the Twelfth Judicial Circuit in and for Manatee County, Florida entered an Order Confirming Appointment of the FDIC as Receiver of Horizon Bank. Id. The FDIC accepted its appointment as Receiver for Horizon Bank. Id.

As Receiver for Horizon Bank, the FDIC succeeds to all the powers and privileges of Horizon Bank. Fla. Stat. § 658.80(2). Rule 25(c) of the Federal Rules of Civil Procedure permits a party to be substituted for the original party to a proceeding if an interest has been transferred from the original party to the substituted party. Upon the circuit court's order appointing the FDIC as Receiver, Horizon Bank transferred its interest to the FDIC. Therefore, the Court grants Plaintiff's request and substitutes the FDIC as Receiver for Horizon Bank as Plaintiff.

Plaintiff also requests that the Court enter an order staying all proceedings in this case. The Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA") provides that "[a]fter appointment of a . . . receiver for an insured depository institution . . . [the] receiver may request a stay for a period not to exceed . . . 90 days." 12 U.S.C. § 1821(d)(12)(A). FIRREA also provides that a granting of the stay is mandatory. 12 U.S.C. § 1821(d)(12)(B). Therefore, the Court grants Plaintiff's second request and will stay this matter for a period of ninety calendar days.

Upon consideration, it is ORDERED AND ADJUDGED that:

(1) The FDIC as Receiver for Horizon Bank is SUBSTITUTED as Plaintiff to this action pursuant to Rule 25(c) of the Federal Rules of Civil Procedure. The Clerk is directed to terminate Horizon Bank from the docket sheet, as it is no longer the Plaintiff in this case.
(2) This matter is hereby STAYED for a period of ninety calendar days from the date of this order;
(3) The Clerk is instructed to ADMINISTRATIVELY CLOSE this case;
(4) On December 23, 2010, the expiration date of the ninety-day period set forth above, Plaintiff shall file a status report with the Court detailing the status of this case; and
(5) At any time prior to December 23, 2010, any party may move to return this case to active status.
DONE AND ORDERED at Tampa, Florida, this 24th day of September, 2010.


Summaries of

Horizon Bank v. St. Paul Mercury Insurance Company

United States District Court, M.D. Florida, Tampa Division
Sep 24, 2010
Case No. 8:10-cv-1977-T-24-EAJ (M.D. Fla. Sep. 24, 2010)
Case details for

Horizon Bank v. St. Paul Mercury Insurance Company

Case Details

Full title:HORIZON BANK, Plaintiff, v. ST. PAUL MERCURY INSURANCE COMPANY, Defendant

Court:United States District Court, M.D. Florida, Tampa Division

Date published: Sep 24, 2010

Citations

Case No. 8:10-cv-1977-T-24-EAJ (M.D. Fla. Sep. 24, 2010)

Citing Cases

Deerborne Cottages, L.L.C. v. First Bank

12 U.S.C. § 1821(d)(12)(B) (emphasis added). The granting of a stay under this section is mandatory. Praxis…