MTB Enters., Inc. v. ADC Venture 2011-2, LLC, No. 13-35468 (9th Cir. 2015)
Annotate this CaseIn 2007, MTB Enterprises, Inc. obtained a $17 million construction loan from financial institution ANB Financial. ANB thereafter failed, and the Federal Deposit Insurance Corporation transferred the construction loan to ADC Venture 2011-2, LLC. In 2012, MTB filed suit in the United States District Court for the District of Idaho against ADC Venture alleging that ADC Venture assumed the obligations of ANB Financial and was therefore liable for breach of contract and damages from MTB’s failed construction venture. The district court dismissed MTB’s claims. The Ninth Circuit dismissed MTB’s appeal for lack of jurisdiction, holding (1) the rule set forth in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 that a claimant must sue in the district court where the failed bank’s principal place of business was located or the United States District Court for the District of Columbia is a jurisdictional limitation on federal court review; and (2) because the United States District Court for the District of Idaho lacked subject-matter jurisdiction over the case from the start, the case must be dismissed.
Court Description: Subject Matter Jurisdiction. The panel dismissed for lack of subject matter jurisdiction an appeal from the district court’s order dismissing claims arising when financial institution ANB Financial failed. The panel held that the venue provision in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, 12 U.S.C. § 1821(d)(6)(A), is a jurisdictional limitation on federal court review. The panel further held that Congress vested two federal district courts with jurisdiction over this lawsuit: the United States District Court for the Western District of Arkansas, where the failed bank’s principal place of business was located, and the United States District Court for the District of Columbia. The panel concluded that because the plaintiffs filed their complaint in the United States District Court for the District of Idaho, that court lacked subject matter jurisdiction. MTB ENTER. V. ADC VENTURE 2011–2 3
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