Opinion
24-cv-01306-SI
08-13-2024
FARELLA BRAUN + MARTEL LLP, Plaintiff, v. FEDERAL DEPOSIT INSURANCE CORPORATION, Defendant.
ORDER LISTING QUESTIONS FOR THE PARTIES TO ADDRESS AT THE AUGUST 16, 2024 HEARING RE: DKT. NO. 27
SUSAN ILLSTON UNITED STATES DISTRICT JUDGE
This case is set for an August 16, 2024 hearing on defendants' motion to dismiss and strike portions of plaintiff's complaint. The Court would like the parties to be prepared to address the following questions at the August 16, 2024 hearing:
An August 16, 2024 hearing is also set for the same motion in the nearly identical case 24-cv-1746-SI Farella Braun + Martel LLP v. Federal Deposit Insurance Corporation. These questions are applicable to both cases.
• The FDIC contends that neither pre- nor post-judgment interest can be awarded because of the FDIC's sovereign immunity, but Far West Federal Bank only speaks specifically about pre-judgment interest. Does Far West Federal Bank also prevent an award of post-judgment interest? Why or why not? What legal authority can the parties point to on this issue?
• What is defendant's legal authority for its argument that plaintiff must allege the existence of a contract between it and Silicon Valley Bank to state a claim for declaratory relief?
• Sharpe v. F.D.I.C., 126 F.3d 1147 (9th Cir. 1997) held that “claims for rescission and declaratory relief must fall under an exception to § 1821(j) in order to survive.” How does Sharpe apply to this case? What is the exception to § 1821(j) under which this case falls?
If the FIDC takes the position that Sharpe precludes a claim for declaratory relief here, how does the FDIC square that position with the fact that the Notice of Partial Allowance plaintiff received from the FDIC states: “Pursuant to 12 U.S.C. Section 1821(d)(6), if you do not agree with this disallowance, you have the right to file a lawsuit on your claim[.]”? Is § 1821(d)(6) an exception to § 1821(j)? If so, what is the legal authority for this?
IT IS SO ORDERED.