United States Second Circuit

In an action asserting competing claims to the proceeds of a failed securitization of credit card debt, summary judgment for the Bank of New York and against the Federal Deposit Insurance Corporation (FDIC) is affirmed where: 1) the FDIC adduced no evidence to support its contention that the amount due on the notes at their maturity was an "invested amount" by the notes' terms, rather than the unpaid principal amount; 2) the FDIC failed to identify any other provision of the transaction documents that supported its contentions that the amount due on the notes was anything other than their entire unpaid principal; 3) issue preclusion did not apply because a prior action did not consider whether the notes at issue were full recourse or limited recourse obligations of the issuer; and 4) since the Bank of New York asserted no claims against the FDIC as receiver for the failed bank, it was not bound by the jurisdictional limitations or other procedural requirements of 12 U.S.C. section 1821(d).

Appellate Information

• Argued 03/04/2010
• Decided 06/01/2010
• Published 06/01/2010

Judges

• GERARD E. LYNCH, Circuit Judge:, Before LYNCH and CHIN, Circuit Judges.

Court

• United States Second Circuit

Counsel

• For Appellees:
  
• Scott H. Christensen, Hughes Hubbard & Reed LLP, Washington, D.C. (George A. Davidson, Hughes Hubbard & Reed LLP, New York, N.Y. and Colleen J. Boles, Lawrence H. Richmond, and Jaclyn C. Taner, Federal Deposit Insurance Corporation, Arlington, VA, on the brief) for Interpleader Defendant-Counter Claimant-Appellant, Federal Deposit Insurance Corporation, in its capacity as Receiver for NextBank, N.A., Michael E. Johnson (Judith A. Amorosa, on the brief), Alston & Bird LLP, New York, NY, for Interpleader Plaintiff-Counter Claimant Defendant-Appellee, The Bank of New York, in its capacity as Trustee for the NextCard Credit Card Master Note Trust., Michael J. Edelman (Michael G. Davies, on the brief), Vedder Price P.C., New York, NY, for Interpleader Defendants-Appellees, First Millennium, Inc. and Millennium Partners, L.P. Ronald S. Herzog (Michael Wexelbaum, Evangelos Michailidis, on the brief), Snow Becker Krauss P.C., New York, NY, for Interpleader Defendant-Appellee, RMK Advantage Income Fund.