June 20, 2019

Colorado Supreme Court: In Suit Against Bank Placed in Receivership, Claimant Must Exhaust Administrative Remedies to Establish State Court Jurisdiction Under FIRREA

The Colorado Supreme Court issued its opinion in In re Thomas v. Federal Deposit Insurance Corp. on June 6, 2011.

Statutory Interpretation—Financial Institutions Reform, Recovery, and Enforcement Act—Receivership—Administrative Exhaustion.

In this original proceeding pursuant to C.A.R. 21, the Supreme Court held that a claimant who has filed an action in state court against a bank that is later placed in receivership must exhaust the administrative remedies established by Congress in the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) before continuing the action in state court. Where, as here, a claimant receives proper notice of the required administrative procedures yet fails to comply with them, FIRREA withdraws jurisdiction over a pre-receivership claim. Accordingly, the Court made the rule absolute and remanded the case to the trial court with directions to dismiss the claims against the receiver for lack of subject matter jurisdiction.

Summary and full case available here.

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