FELDMAN GRAF PREVAILS IN A SEMINAL CASE BEFORE NEVADA SUPREME COURT
Rusty Graf of Feldman Graf, P.C., was successful in the Appeal on behalf of a client involving significant national issues of law regarding the Authority of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA). This Act governs the activities of the FDIC as well as the claims and defenses that are available to those who potentially have claims against failed banks.
The Nevada Supreme Court reversed the District Court and remanded the case back to the District Court on the inquiry of whether or not, on an issue of First Impression in Nevada, FIRREA’s jurisdictional bar extends to successors in interest to the FDIC. The Nevada Supreme Court concluded that while FIRREA’s jurisdictional bar divested the District Court of jurisdiction to consider claims and counter-claims asserted against a successor in interest to the FDIC (those who purchase outstanding debt from failed banks) not first adjudicated through FIRREA’s claims process, it does not apply to Defenses or Affirmative Defenses raised by a debtor in response to the Successor in Interests Claim for collection. Ultimately, because the Affirmative Defenses raised unresolved questions and material facts, and because Affirmative Defenses are not barred by FIRREA, the Supreme Court found that the District Court erred in granting Summary Judgment in favor of the Successor in Interest on its breach of contract and breach of personal guarantee claims.