FDIC as Receiver for AmTrust Bank v. Fidelity National Title Insurance Company, No. 1:2015cv24454 - Document 56 (S.D. Fla. 2017)
Court Description: ORDER Granting 38 Motion for Summary Judgment. Signed by Senior Judge James Lawrence King on 6/23/2017. (jw)
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FDIC as Receiver for AmTrust Bank v. Fidelity National Title Insurance Company Doc. 56 UNI TED STATES DISTRI COURT CT SOUTH ERN DISTRI O F FLORI CT DA M I M ID I I O N A V SI CA SE N O .15244544LK FEDERAL DEPO SI W SURANCE T CORPORATI AS M CEI ON VER FOR AM TRUST BANK, Pl ntf, ai if V. FI DELI NATI TY ONAL TI TLE I NSUM NCE COM PAN Y, a Fl i cor aton, orda por i Def nt enda . / ORDER GR ANTI DEFENDANT' M OTION FO R SUM M A RY NG S JUD G M EN T THIS M ATTER comesbef et Cour upon t pari c os m otonsf or he t he tes' r s i or s mmayj u r udgme ,b hsldonMa 8, 7. 38( fnda ' Moton) DE 39 nt ot e y 201 DE De e nts i ; ( antf M oi , Cou t sa tonal c i r dt pa te Re po e , Pli ifs ton) The r ha ddii ly onsdee he ris' s ns s each fl on M a 22,2017,t rRe i t e o, fl on M ay 30,201 a t r ed y hei ples her t ed 7, nd hei r pectve saement ofm at i f s.Upon r e (ft r d and ca ef es i t t s eral act eviw ) he ecor r ul c i rton,heCou t i t ts onsdeai t r fnds ha ummayj gme s dbegrntd i f vo of r ud nt houl ae na r t D ef ndant he e . Dockets.Justia.com FACTUAL AND PRO CEDURAL BACKGR OUND Thi cas arsesfom a i ur s e i r n ns ancediput bet s e ween Pl ntf ,t Feder ai if he al De il s a eCo porto (TDl ' a r c i rofAmTr s Ba a istte post n ur nc r ain t C' s e eve ) u t nk, nd t il i ur r,Def ntFi iyN a i Til l ur nce Com pa l 2008,Def ns e enda delt tonal te ns a ny. n endant i ued Cl i Pr ecton Lete st Am Tr tBa w ih r pec t t o l ss osng ot i tr o us nk t es t o w oans . Pur uantt t Cl i Pr ec i Lete s,Def ndantagr t i m niy Am Tr t s o he osng ot ton tr e eed o nde f us Ba f a y ls e aii o o ( )t cosng a e tsf iu et c ywiht nk or n o s s rsng ut f 1 he l i g n ' alr o ompl t he ba k' cosng i tu tonso ( a fa o diho sybyt cosng a n i n s l i nsr ci r 2) ny rud r s ne t he l i ge t n ha i t ba sf ndlng he nk' undsordocum ent s.DE 37- TheCl i Pr ec i Le t s 27. osng ot ton ter frhe pr vi t ta camsmus ber c ve byt i ur rS t nni t ( ) u t r o de ha ny li t e ei d he ns e s hi ney 90 wi daysf om t dae ofdicove ofs l 'DE 37r he t s c/ uch oss. ' 27. Rel nther t bank' cl i i t i pr de t tt cl i age eva e, he s os ng nsructons ovi ha he os ng nt mus ( )ae theba a t fcst tmi ta fc t ba sde iint ma t t 1 lr t nk s o a t ha gh fe t he nk' cso o ke he l s asf si catng t f oan, uch act ndi i hat undsar bei conti e by s e ng rbutd omeoneot rt he han t borowe , 2 no iyt bak i t r i r a o t beivet r i fa ulnt he r r ( ) tf he rk f hee s e s n o le hee s r ud e a tviy,a d,fs s pe t cosng i ci t n i o, us nd he l i mmeditl ( )s pe t cl i i t r i aey, 3 us nd he osng f he e s knowl edgeorr on t belevet ta down pa entm one i notfom t eas o i ha ny ym y s r he boro rso f r we ' wn undso abo fdegit ( o y a c p f r na i f, 4) nl c e t undsfo a c z st t r m c olnt ha ha be ndicos dt t ba a ( )s pe t cosng a notf t ba i ve e s l e o he nk, nd 5 us nd he l i nd iy he nk f t e i know l her s edge t t pal i t t tansa i m ade a m at i m i s at entor hat he - es o he r cton t eral s t em dicove saf s s r alehood bef e,durng,orafercl i DE 40- a 1or i t osng. 7 t 4. I is M oton f Sum m a y J nt i or r udgm ent Pl ntf FD I cont , ai if C endst tD ef ha endant wr uly denid t vald cl m sunde t Cl ng Pr ec i Leter f vi a i ongf l e wo i ai r he osi ot ton t s or olton oft bnnk' cl i i t uctc l is cr m oton,D ef ndantcount r t he s osng ns r ims. n t oss i e e s hat Pl ntf i ba r fom as e tngt pr entac i becaus Pl ntf scl m sunder ai if s red r s ri he es ton e ai if ai t Cl i Pr ecton Lete s w e e untm el The Cour w iladdr st he os ng ot i tr r i y. t l es he cic sa r um tncess r uroundi each cl m i mr ng ai n n. A .The Fr audul Loans ent 1. The Siva Loan l W ih r pec t t tr tl t es t o he i s oan,Pl ntf aleges t t cl i i t i w er ai i f l hat he os ng nsructons e vi at when t cl i agentf l t colec t down pa entf t borower ol ed he osng aied o l t he ym rom he r prort t di bur em e oft l n. i o he s s nt he oa On Nove r1 2008, hec osng a nta pr ve a$1 298.3 m orga mbe 8, t l i ge p o d 47, 5 t ge l t Giele Siva,and t 1 wasdibur ed t t pr rt s l t sa e da oan o s l l he 0= s s o he ope y eler he m y. DE 40- 1. ne da on No m b r1 t s le wie $1 1 t a c mpa 1 The xt y, ve e 9, he e lr r d 06, 25 o o ny caled N ew Lie l portand Expor . E 40-1 N ew Lie t w r e t ee checkst a l f m tD 6. f hen ot hr o man na e UrasAssswhi t al t $73, 69,and addii l wr ea$10, m d i i ch ot ed o 689. tonaly ot 000 c heck t Siva.D E 40- 40-1 Lat t day,A s i pur has a cas e s c o l 17, 6. er hat s s c ed hi r' heck on be l o Sivaf rt a untr q rd f t downpa nt( 68 69) Thi haf f l o he mo e uie or he yme $73, 9. . s s m chec whih wasis t daysahert l wasdibur ed, w asuli a el ha k, c s ued wo he oan s s tm t y t s ceofSiva' down paym e .Ther or i i undiput t t f ng oft he our l s nt ef e, t s s ed hat he undi he down paymentwasar ul ofa fa e sr buyers he ebet es t r udulnt taw c m ween t s l and he eler Siva.1 l Siva de a t on t l n afermaki onl t pa ent . DE 40- DE 37l f uled he oa t ng y wo ym s 26; 1 at8.On Jul 1 2009,Am 'r tBa i tat a f ecl ur acton agai tSiva. 7 y 3, r us nk nii ed or os e i ns l D E 3722. A yearl er i Nove ber2009,t Siva l wasr ered t t bank' at , n m he l oan ef r o he s qualt contolde rmentf audii pur uantt t ba ssa d pr iy r pa t or tng s o he nk' t ndar ocedur f e or e l de a t D E 37-1 On M ar 2,2010,t a t concl ary f uls. 6. ch he udior uded t t e w as hat her mir p e e ai byt bo r we ba e onfndi t t( )t p opet wa va a se r s ntton he ro r s d i ngs ha 1 he r ry s c nt eve t n hough t bor ow erls ed i asherpr m a y r i nce, ( t borowe ' l ns he r it t i r es de 2) he r rs oa cont ned sgni ai i scantgitf f undsfom ext r ended f iy m ember , ( )t gf f am l s 3 he it unds cont ned i i l t s a handw rtng,alhough pur t y f om dif re ai dentcal eter nd ii t por edl r f e nt fmiyme r,( t i tntl npur tdl c ti daS f'fom a u l,bu a l mbe s 4) he nsa oa pore y onane s t'r n nce t gi i tgaton r nvesi i eveald t t Suncl 'donorwasi f ctnotr a edt t bor ower e hat he ç e' n a elt o he r , a ( )t bo r rha muli er sde e i as t ro oftme( ro nd 5 he rowe d tpl e i nc s n hor pe id i unde ne ye r . 3 1 a 8. a ) DE 7- 7 t 1A sr buye i aperon who obti al n wihou i entt ownorocc i i or rt fciiaeafa e taw rs s ans oa t t nt o upy t n de o a ltt r udulnt tans tonf aprnci buyerwhocoul ot r s n pa tci t i t ta aci , SeeSTRAW M AN, ACK' r aci or i pal d hewie ot ri pae n he r ns ton BL S L DITONAR ( t e 2 0 ) AW C I Y 9h d. 0 9. On December4,2009,AmTr tBa f l a w e i o t r ver hi of us nk aied nd nt nt he ecei s p Pl ntf FDI Pl ntf FDI se ng i o t s ai if C. ai if C, tppi nt he hoesofAmr us,contnued t rr t i o pur ue f ecl ur oft Siva pr r y,a a Fi J s or os e he l . ope t nd nal udgm entofFor os ew as ecl ur ent ed agai tSiva on Decem be 9,201 DE 37- On Aprl15,201 t er ns l r 3. 23. i 4, he pr t wass d t at r pary ata Gnanci l t Pl ntf . DE 37- DE 40- . opery ol o hid t al oss o ai ifz 25; 1 N ot ihs a ng t r uls oft M ar h 2010 a tver f ng t bor ow er s w t t ndi he es t he c udi iyi he r ' m ir es nt i a t l i r dur ng t A pr l2014 s e oft f l ed s epr e aton nd he oss ncur ed i he i al he brec os pr t Pl ntf di notr opery, ai if d eportacl m f l st t Def ai or os o he endanti ur ra t stm e. ns e t hi i l t Pl ntf cl m st i di notdi coveris l suntlJ nsead, ai if ai hat t d s t os i anua. 2015, w hen i l y t r ved r ds oft l pur uantt a adm i sr i s ecei ecor he oan s o n nit atve ubpoena.Speci l , as fcaly pa tofal gesc e i tgai ofdef uled l ns on Decem be 20,201 Pl ntf r ar al nvesi ton a t oa , r 4, ai if us isadm i sra i s ed t nit tve ubpoe powe t s ve as na r o er ubpoenaducest ecum t Ba of o nk Amercat obt n t ba r dsoft Sival DE 40- Therecor wer i o ai he nk ecor he l oan. 33, ds e pr oduced t Pl nt f on J o ai if anua y 13,2015.D E 40- A ferr vi i t s r 34. t e ew ng he ubpoenaed docum ent ,on J nua y 20,2015,Pl ntf s a cl m l t t D ef s a r ai if ent ai eter o endant f s or cove ageoft l as at wih t Sivata acton. 40- Thecl m was r he oss soci ed t he l r ns i DE 37. ai deni ed, 2TheSivapr rywass dt at r pa t f $1 ,000,whih i welbeow t unpai $283, 56prncpal l ope t ol o hid ry or 40 c s l l he d 555. i i bal eoft eI DE 37- DE 40anc h oan. 25; 28. 2. The de Souza Loan W ih r pectt t s cond l n,Pl ntf aleges t tt cl ng i tuctons t es o he e oa ai if l ha he osi ns r i w e e vi a ed becaus t cl i agentappr r ol t e he osng oved di bur em entoft l n even s s he oa t hough t dow n paym entcont ned fundst w er nott bor ow er' . he ai hat e he r s On Se e r 1 20 t c osn a nta ove a $1 720 m o t ge l a pt mbe 9, 08, he l i g ge ppr d 96, rga o n t Cl l a de Souza,a t 1 am ountw asdi bur ed t t pr rt s l .D E 40o atdi nd he 0% s s o he ope y eler 21. A n HU D - f m 3com pl ed by D ef et endant s a oved tte com pany f s y ' ppr il al el I or i cat t t$62, 78 wascoleced i cas fom de Souza asa down paymentt ndi ed ha 202. l t n h r o s ur t l ec e he oan.D E 40- H ow ever t r d i cat t de Souza' account 6. , he ecor ndi es hat s bal nce a t tm e oft s e wasnots sci ntt m ake t r r dow n paym e . a t he i he al uf e o he equied nt I t nsead,i vi a i oft cl ng i t tons,t cl i a n ol ton he osi nsruc i he osng gentaccept t dow n ed he paym entf undsf om Am ercan Fi nci Sol i LLC,a com pany i ved i a r i na al utons, nvol n f audul s r buye s m e.DE 40- DE 40- at7r ent taw r che 23; 25 8. Prort r ei ng notce ofde Souza' m ir es aton,A m Tr tB a s d i o ec vi i s s epr ent i us nk ol t d Sou noet t Fe r HomeLoa M orga Cor ai (ç e eM a ' . he e za t o he deal n t ge porton t ddi c' Fr ) DE 37- D E 37- D e Souza (ef uled aferf lng t m ake a si e pa enton t 2; 3. la t t aii o ngl ym he l D E 37oan. 3. On A ugus 11 2009,Fr e M ac s A m Tn1 tBank a r pur has dem and t , eddi ent s e c e a an accom panyi l t r w he ei Fr e M ac i or ed A m Tr tt tde Souza nd ng ete , r n eddi nf m us ha 3An HUD-If m 'i t unior s teme sae or ls he f m etl nt ttmentma e by t RealEsaeSeteme Pr edu esAc i ndatd he tt tl nt oc r tn alta a i i vi l by fder l i ur d ba .'FD/ v.Ator ys'Til I s.Fun4 /7.No.1 23599lr ns ctons nvol ng oans e aly ns e nks' C ) l t ne te n ?c, 2CI 2 4WL43 4 70 a * ( . Fa S p. , 01)( et, .(in 1 U. C. 2 01e s q . V, 01 8 2 , t 2 SD. l. e t3 2 4 S i J) ct g 2 S. j 6 t e j z i 6 had m i r pr ent he ac s e es ed r counti or a i N am el Fre e M ac ver fed t tde nf m ton. y, ddi ii ha So a' a c untonl c nt i d $ a t tm eofc osng f li f rs r oft uz s c o y o ane 307 t he i l i , a lng a ho t he $6 202. r q r d asdown p yme . 37- DE 3 4. Fr ddi M a lte 2, 78 e uie a nt DE 6; 7- The e e c e tr f t verfed t tt s als iy numbe lsed by de Souzaw asf s urher i ha he oci ecurt r it ale. Ac di y,Fr ddi M ac concl cor ngl e e uded t t qualt oft l w asnotacceptbl hat he iy he oan a e a dem anded t A m Tr tBank r chas i.D E 37- The r chas w as nd hat us epur e t 4. epur e a oved by A m Tr ton Sept ber 17,2009.D E 37ppr us em 6. O n Fe uar 2,2009,A m - us Bank com m enced f ecl ur pr br y fr t or os e oceedi ngs agai tde Souza.DE 37- M ea hie,asw e know ,A m Tr tBank f l and w as ns 9. nw l us aied pl aced i o t r ver hi ofPl ntf FD I i D ece ber2009.A Fi J nt he ecei s p ai if C n m nal udgm entof For os e w asent ed on A ugus 22,201 D E 37-1 The de Souza pr t w as ecl ur er t 3. 0. opery l t rsol t a t r pary a a fL a e d o hid t t nanci l t Pl ntf on A pr l22,201 D E 37-1 4 al oss o ai if i 4. 2. A lhough Pl ntf had bee al t t t bor ow er' m i r pr nt account t ai if n ered o he r s s e ese ed i f m a i i Se e ber20095a had experenced a l f om t pr t s e i n or ton n pt m nd i oss r he opery al n A prl201 Pl ntf f l t r i 4, ai if aied o eporta cl m t t D ef ai o he endanti ur att stm e. s i ns er hi i A t had done w ih t Siva l t he l oan,Pl ntf us is adm i sr i s ai if ed t nit atve ubpoena pow ert o obt n t de Souza ba r ds fom Sa ai he nk ecor r badel U nied B a on Ja r 20,2015,D E l t nk nua y 4Th pr rywa s d f $65:000,whih wa frs tofdeSouza' unpai $1 720prnci lbalnce DE 37e opet s ol or c s a hor s d 96, i pa a . 1 DE 40- . 2; 31 5Th Die t ofFr ud a Cl m sa t M orga Re r Law Gr , whi i tgatsl nson be foft e r cor a nd ai t he t ge cove y oup ch nvesi e oa hal he Pl ntf, nfr d t t r r s de nd wasmai ai a Amlr s Bankasabu nes r or a f t r ai if co ime hat he epu cha e ma nt ned t -u t si s ec d, nd urhe c imedt tt ba wasa r t tt borowe ' ac ountsaeme swe eno ac r t whe i rcei t onfr ha he nk wa e ha he r rs c t t nt r t cu ae n t e ved he r pur s de a i 2009. E 37- a l e cha e m nd n D 5 t 6. 7 40- The r dsw er pr 35. ecor e oduced t Pl ntf on Febr y 2,2015.D E 40- Fi l o ai if uar 36. naly, on Febr y 1 2015,Pl ntf s nta cl m l t rt D ef uar 2, ai i f e ai ete o enda f t l s as oci ed nt or he os s at w ih t de Souza l t he oan.D E 40- The cl m w as deni 38, ai ed. B. The Ins antLaw s t t ui Pl ntfssl t i t s tagai tDef nt f br ai if ed he nsant ui ns enda s or each ofcontacton r D ecem ber3,2015.Bef e t C our ar t par i 'cr sm otons f Sum m a y or he t e he tes os i or r J udgm ent I is M oton,D ef ntprm ar l ar .n t i enda i iy gues t t cl m sw er untm el hat he ai e i y undert 90- y notce pr si l r pons Pl ntf concedest i w asaw ar of he da i ovi on. n es e, ai if hat t e t bor ower' f audul conductyear pri t flng t cl m ,butas er st tt he r sr ent s or o i he ai s t ha he 90- y notcepe i di notbegi t nm untli di da i r od d no i t scover t ough t s ed, hr he ubpoe naed docum ent ,t t cl i agent w e e per onaly i ved i t f aud.The m a t s hat he os ng s r s l nvol n he r ter hasbee f l bref m aki t m otonsr pe f t sCourtsr ew . n uly i ed, ng he i i or hi ' evi LEG A L STAN D A RD S s summa yj r udgme i l pr praewhe et pla ngsa s pori nt sp o it r he e di nd up tng m a eral es a i h t tt r i no ge ne i s as t any m a er alf tand t tt t i s t bls ha he e s nui s ue o t i ac ha he movi pa t i e tte t j ng ry s n ild o udgme asamatroflw. Ceotx Cor v Catet477 nt te a ' l e ' p. . r t, U. 31 3 ( 98 ; d. Ci P. ( ) Su r j me Sspr ry r gade S. 7, 22 1 6) Fe R. v. 56 a . mmay udg nts opel e r d i notas a dif ed pr s avor ocedur s t ut butr he asan i egr par oft Fe al al hor c , at r nt al t he der Rulsa awhol,whih aede i dt s c et j t s e r a i xpe i e s e c r sgne o e ur he us, pe dyl) nd ne nsve deemi tonofe r a to 'Pac v. pobi co, F.d 1 75 1 4( 1h Ci. tr nai vey cin. e Ca an 283 3 2 , 28 1 t r ' 8 200 ) Summayj dg nti a opraeunls t r i age neis offc f r 2. r u me s ppr it e s he e s nui s ue a t o tilAge v. re , 6F. x 8 8 ( 1h Ci. ) SForf cua is st be ra. e Po tr 21 App' 37, 40 1 t r 2007 .t' a t l sue o c ie e g nui ,he mus ha ara ba i i t r c d. M iev Jef s Cï onsd rd e ne t y t ve e l ss n he e or ' z . feron / ' y Bd.o c, F. 739, 2 ( 1h Ci.1 .n op ig amo i f rs fEdu .93 3d 74 1 t r 996) l posn ton o umma y r j gme ,henonmovi pa t S ts s ci fcst s po tt tt r i a ud ntt ng ry l mus how pe fc a t o up r ha hee s ge ui diputm And r onv Li ryLob y, nc, U. 242,2 ( 986 . n ne s e' e s . be t b I .477 S. ' 48 1 ) The nonm ovi pa t m ay notr y on t pl ngs butr herm us de ons r e a ng r y el he eadi , at t m tat genui i s f t i tt ough af i vis deposii ,i er ogat y ans er and ne s ue or r al lr fda t , tons nt r or w s, adm i si .Cel e 477 U . a 323- The exi t s ons ot x, S. t 24. s ence ofa çm er s ntla' of ç e ci il ' evi dence i s n uppor oft nonm ovi pary' pos ton i i ufi ent t e m us be t he ng t s ii s ns fci ; her t evi dence on w hi t snderoff coul r ch he act d easonabl tnd f t m ovi pary. atl y l or he ng t N ' Ca .Co v Pik ns 58 F. x 8 8 41( 1hCi. 4)( tng Wale v. s . . c e , 2 App' 39, 40- 1 t r 201 quo i kr Dar y, 1F. 1 15 (.t Ci.1 ) b 91 2d 573, 77 11h r 990). D ISC U SSI N O Bas on t r d e dence,t e i no di put t t cl m s a i i under ed he ecor vi her s s e hat he ai r s ng t Cl i Pr tcinLetr wees j c t almiai pe i unde whihPlitf he osng oe to tes r ub e t o i tton rod r c anif wasrquie rpor ls e t t De e nti u e t t nni t ( da fom t e r d e t o s s o he fnda ns r r t hi ney 90) ys r he wi dat ofdi e scover ofsuch l s' D E 37- Thi 90- pe i s vesasa ibrght y os .' 27. s day r od er d i lne'me ni ta a prj iet tPlitf ma ha s fr douti oft i , a ng h t ny eudc ha an if y ve ufee sde he ' lmia i pe i i ir l va . C v Ator ys' teI . ni I . No.1 2 i t ton rod s re e nt FDI . t ne Til ns Fu nc , 2- 35999 CI 201 M?z 4270, t* ( D. a Se . 201 ( iz J) Fu t r S n V, 4 l 438 a 6 S. Fl. pt 3, 4) Set, .. rhe,t a i ur m us have di cover bot ac uall s and t f s gi ng rse t a pot ntal ns ed t s ed h t os he act vi i o e i cl m i or t s a t 90 day cl k f notf ng t i ur oft cl m unde t ai n der o t rt he oc or iyi he ns er he ai r he ( osngPr e tonLe tr. F D.. v St tTil Gu .Co.No.1 1 2Cl i otci te j' IC. . ewar te ar , ' 2- 006 CV, 201 W L l 307, t* ( D. a M a 6,201 ( ng, ,. c nta is beor 3 891 a 6 S. Fl. y 3) Ki J) The e r l s ue f e t Cour,t r or i whe herPl ntf s he t he ef e, s t ai i f ubm it iscl m s t D ef ndantw ihi t ted t ai o e t n he 90- y notce pe i da i r od. I t i t ntcas Pl ntf ur t Cour t hol ast under i n he ns a e, ai if ges he t o d, he s gned di i dn F. .. v.St D I C. ewar Til G uar y Compan t t 90- y notce pe i di not t te ant y hat he da i r od d begi t r untli r ved t adm i s r i y s n o un i t ecei he ni tatvel ubpoenaed bank doc ent . um s Speci l Pl ntf cont nds t t w ihoutknow l fcaly, ai if e ha , t edge t t cl i agent w er hat he os ng s e i ved i t f aud,Pl ntf coul nothave know n t t l sw ascover nvol n he r ai if d hat he os ed beca et Cl ng Pr ecton Leter onl cover conductby t cl i age s, us he osi ot i t s y ed he os ng nt notby t bor ow er .Thi ,how e ,w as nott hol ng i St he r s s ver he di n ewar . t I St n ewart t onl f st t pl ntf sw er aw a e ofpr ort r vi t , he y act hat he ai if e r i o ecei ng he s poe e d ume swee(1 t tt bo r r ha de a td,a ( t t ub na d oc nt r ) ha he rowe s d fule nd 2) ha f ecl ur pr or os e oceedi had com m enced.N ot y,t e w er no f si St ngs abl her e act n ewartt hat w oul ha al t t pl ntf t pot ntalcl m cover pr ort is r ptoft d ve ered he ai i f o e i ai age i o t ecei he s ubpoe naed docum ent .A cc di y,t under i s or ngl he s gned hel t w he t pl ntf d hat re he ai if had no pr oroppor uniy t be notced ofa pot ntalcl m ,t cl k di notbegi t i t t o i e i ai he oc d n o 1 0 rm untlis r ptoft s t i t ecei he ubpoena ba r ds.Such a hol ng doesnotpr ude ed nk ecor di ecl tte i ur s f om r ghtuly as er i a vi a i oft 90- y notce perod w he as il ns er r i f l s tng ol ton he da i i re, her t pl ntf ha notce ofa pot i cl m f bef e r vi t s e, he ai if d i ental ai ar or ecei ng he ubpoenaed r ds.l ecor ndeed,t f t i t i t ntm ater a e cl l di tnguihabl f om t e i he ac s n he ns a t r eary si s e i hos n t St he ewar cas t e. The C our lndst f t i FDIC v.Chi t he ac s n cago 'il I T te nsurance Company 1 F. 37 Su 3 1 ,1 ( D. a, 01 )( f mi R&R)( orno, .t bemo ea n pp. d 331 332 S. Fl 2 5 afr ng M e J) o r ki t t sm a t .Tha cas i ved t s e Pl ntf and notce pr si ast e o hi ter t e nvol he am ai if i ovi on hos pr enty bef e t undersgned.A s i t i t cas t pa i ûl c os m otons es l or he i n he ns ant e, he rtes ed r s i f s or ummayj gme , r i t prma yis wa whehe Pli iftmey fld r ud nt wheen he i r sue s t r antf i l e iscl m f l s wihi t gO- tm eperod.Ther t cl i i t tonswer t ai or os es t n he ' day i i e, he osng nsruc i e vi at when t cl i age a ol ed he os ng nt ccept a down pa entw ih f ed ym t undst w er not hat e t bor ow e s A sher t pl ntf ar he r r' . e, he ai if gued t ,alhough t bank w a pr ousl hat t he s evi y nott t tt bor ow erhad com m it f aud,pl ntf coul nothave know n t iied ha he r ted r ai if d hat t ew asm iconduc by t cl ng age untla t i had r ved is her s t he osi nt i fer t ecei t adm i sr i y s nit atvel ubpoenaed docum ent .The def s endantcount ed t Pl ntf onl er hat ai i f y nee be a ar off s gi ng rs t upot i cl m . The def d w e act vi i e o ental ai endantf t rar urhe gued t tt f l ngfcswees tce tt ae t hepli ift apotnta cli ( )t ha he olowi a t r ufi in o lr t antf o e il am: 1 he bor ow erdef t w ihoutm aki a sngl paym ent ( t bo r we a t r auled t ng i e , 2) he ro r nd he bor ow er sator y notsed t bank t tt l w as f audul , ( )t r we e r ' t ne i he ha he oan r ent 3 he e r i o itncesi t HUD- f ' ,a d ( t tt pr pe t wa f ecos dupo a nc nsse i n he 1 ol n 4) ha he o ry s or l e m n nd s d a a l t t pl ntf . ol t oss o he ai if A fercar ulr ew ofa Reportand Recom m endaton by M agi tat Judge t ef evi i sr e J J.O ' lva as w el as1 t ough ana ys s oft l ,t H onor bl Judge ohn Suli n, l , hor l i he aw he a e Fede co A,M or no uli at y concl d t Sheappr i e sa r appear t be ri e tm el ude hat s t oprat tnda d so one t ti st notcepr son w hen t l nderdi cover dact gi ng r s t hat r gger he i ovi i he e s s f s vi i e o potntalc e a e.'Chiago Til I s Co. 1 F.Su 3da 1 ( uotngStwa t e i ov r g '' c te n . , 37 pp. t 336 q i e r Til Gu .Co.2 3W L 1 91 07) Ac o di y,J geM o e f undt tt fcs te ar , 01 8 3 . c r ngl ud r no o ha he a t al tng t FD I t t bor ow er' f aud wer s fci t ti r di c er i he C o he r sr e uf ent o r gge s over ofa y pot i cl m undert 90- notce pr s on.J ental ai he day i ovi i udge M or f he not t eno urt r ed hat t e i no is ent el entf t f l e t f l a cl i i tucton pr s on.' her s dci er em or he aiur o olow osng ns r i ovi i ' l a 1 38( otngAtor ys' tel s Fu l . 2 4W L 438 ,a * .n d. t 3 qu i t ne Til n . n4 nc, 01 4270 t 7) l ot w or ,a docum ents i a vi aton oft cl i i tuctonst i sa her ds ny how ng ol i he osng nsr i rgger cl m ,r r es ofw het rt cl i a ai ega dl s he he os ng gentw as aw a e oft vi aton att tm e. r he ol i he i l J d udgeM or f t r oned t t çpot i cl m ' s andar i f eno urher eas hat he d entil ai ' t d s ounded on s ound polcy i t l ng a tte i a i ty; i n he endi nd il nsur nce ndus r The eaego polc r a onsf rt sr e l ma st to (ncudi r r od iy e s o hi ul. n ny iuains i l ng i t sc s ) itke ye r frlndest a q r s cscpr ofa n hi a e ,t a s a s o e r o c uie pe i oof cl i i t uc i vi aton.Thus i a l r' oblgaton t pr de osng ns r ton ol i , f ende s i i o ovi notce t a tte i ur ofa cl m i onl t i ed when t l i o il ns er ai s y r gger he enderhas s sc pr ofan actl cl ng i t i 'i a i t tte peci oof tal osi nsructon v ol ton, hen il i ur sw oul r ai unaw a e ofpot ntalcl m s t r def i t ns er d em n r e i ai , he eby eatng he pur e ofa cl i pr ec i l ter' tm el notce pr si W ihout pos os ng ot ton e t s i y i ovi on. t tm el notce,tte i ur s c m ott ke s e t i tgat t pot i i y i il ns er ar a t ps o nves i e he ental 1 2 cam aj btl is rr aemoes i dfrta ln esa y y a d li o ie n ues r r ut o h n e d r n qa n t e m ii e t rpot i l s.The a oprat sandar t be appled, tgat hei ental os ppr i e t do l t ef e,i w het rI her or s he ndyM ac a t FDI w er i poss s on off s nd he C en es i act gi ng rs t a pot i cl m undert Cl i Pr ecton Leter.... vi i e o ental ai he osng ot i t 1 at 1 d. 336-37. Ther or i adoptng t S e i cl m ' sandar t hascons s enty bee ef e, n i he ç ntal ai ' t pot d hat it l n us dbydititc r j ge i t SouhenDitito Flrd t Cour fndst t e src ou tud s n he t r src f o ia,he t i ha Pl ntf wasalrt t f t whih gavers t apot i cl m prort isr ptof ai if e ed o ac s c ie o ental ai i o t ecei t s he ubpoenaed docum e s See,e. ,Chi nt . g. cago Til l .Co. 1 F.Supp.3d at 1 te hs , 37 335; St ewar Til Guar.Co2013 W ' 1891 t te L 307,at#5;F. .. v.Ator ys'Til I D IC t ne te ns. Fu No 11 -CV-211 -PCH, E.1 a 1 ( D. a M a 1 ,2011 ( c J) nd, :0 97 D. 64 t 1 S. Fl. y 7 ) Hu k, .. W ih r pectt t Siva l Pl ntf w asal t t)f sgi ng r se t a pot ntal t es o he l oan, ai if ered ( act vi i o e i cl m be nni i N ove ber2009 w he Pl ntf spr ai gi ng n m n ai if edecess r ved t audi or ecei he t r s t verf ng t t pr r y w asvacant s had m uli e s tt m r i nces e uls iyi hat he ope t , he tpl hor er es de , s pi ousgi tf us ci f unds had bee us and herls ed em pl sw er nonexit . A st n ed, it oyer e s ent o t de Souza l n,Pl ntf had notce ofa pot i l s i A ugus 2009 when he oa ai if i ental os n t Fr e M ac s t r eddi ent he epur hase de and ve iyi t t bor ow erhad c m r f ng hat he r m i r es ed he as et and di notha enough m oney i heraccountt m ake t s epr ent r s s d ve n o he down paym ent , O fcour e,i i note s ts nough t Pl ntf be aw ar ofa pot ntalcl m . st hat ai if e e i ai A he under i s gned hel i St d n ewart t notce perod i t i ed onl w hen Pl ntf has , he i i s r gger y ai if di cove ed bot a pot i cl m and isact l s H er a t ver l es , s r h ental ai t ual os es. e, t he y at t 1 3 Pl ntf becam e aw ar ofis aduall s w he t f ecl ed pr rtesw er sol i ai if e t os es n he or os ope i e dn Aprl201 f pur hase am ount t twer f bel t bor ow er out t ng l i 4 or c s ha e ar ow he r s' s andi oan bal ances Y et Pl ntf di nots i iscl m f t l es as oci t w ih t Siva . , ai if d ubm t t ai or he oss s a ed t he l l untlJ oan i anuar 1 2015,nordi i s i a cl m f t de Souza l n untl y 3, d t ubm t ai or he oa i Febr y 1 20l Cl l bot dat f louti oft contact 90- notce uar 2, 5. eary, h es al sde he r ual day i pe i r od. A ccor ngl afercar ùlconsder i oft 1 i t s dit i ,t Cour di y, t ef i aton he aw n hi sr ct he t fndst tPli ipscamswe euntmey, nds i ha antf li r i l a umma yj dgme tmus b a r d r u n t e wade if n avoroft D ef he endant . s C O N CLU SIO N I i O R D ER ED ,A DJUD G ED ,and D ECR EED t D ef ts hat endant sM oton f ' i or S ummay J me t( 38) le, n t s mei, r b GRANTED.ti f t r r udg n DE ,7 a d he a s he e y I s urhe O R DER ED ,A DJUD G E D ,and D EC R EED t Pl ntf Cr sM oton f hat ai i ps os i or Su r J me ( 39 , a d t s mei, r byDENI mma y udg nt DE ) be, n he a s he e ED. By se at Or r,t Courts lent rFi J par e de he hal e nal udgm enton be fofD ef ndant hal e a agai tPl ntf s. nd ns ai i f 1 4 D O N E and O R D ER ED i Cham ber att J esLaw r nce K i Fede al n s he am e ng r J tce Buidi a U nied St es Courhous i M i i Fl i t s231 da of us i l ng nd t at t e n am , or da, hi - y d J une,201 7. % AM ES LA W REN CE K I G N UNI TED STA TES D I STRI C GE SO U TH ERN D I STRI O F F ORI A CT D Cc: A l couns ofr d 1 el ecor 1 5
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