Royal Car Rental, Inc. v. Banco Popular de Puerto Rico

Summarized by William Amann , Amann Burnett, PLLC
12 years 9 months ago

Citation:

D. PR May 24, 2013, Docket No.12-2131

Tag(s):

Ruling:

Dismissal vacated and remanded with instruction to dismiss on different grounds--lack of subject matter jurisdiction.

Procedural context:

Plaintiff-Appellants filed Adversary Proceeding against failed bank, Westerbank in Puerto Rico. The Adversary Proceeding was decided in favor of Westernbank on Summary Judgment. No appeal was taken. Plaintiffs filed a separate suit in state court in Puerto Rico and Westernbank obtained the same result. After the FDIC became the receiver of Westerbank, Westerbank's assets were sold to Banco Popular de Puerto Rico. Plaintiffs then sued Banco Popular in state court in Puerto Rico. Banco Popular removed the action to Federal District Court in Puerto Rico. That court dismissed the case against Banco Poular under FRCP 12(b)(6) grounds and this appeal ensued.

Facts:

The Plaintiff-Appellants allege that Westerbank wrongfully accelerated their debt and forced them into bankruptcy. They brought a number of suits which were all dismissed or disposed of on the merits. The Court of Appeals remanded this case simply because it found that the District Court did not have subject matter jurisdiction to hear the case because the acts complained of all related to acts of a failed bank which, pursuant to the Financial Institution Reform, Recovery and Enforcement Act of 1989, required that an administrative claim(s) be made as a prerequisite to any suit.

Judge(s):

Howard, Lipez and Kayatta, Circuit Judges

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