On August 29, Judge Louis L. Stanton of the United States
District Court for the Southern District of New York granted a
motion by JPMorgan, Citigroup and several other banks for judgment
on the pleadings, dismissing a lawsuit filed by the FDIC, as
receiver for Colonial Bank, involving US$388 million in RMBS.
Defendants sought judgment on the pleadings that the FDIC’s
claims under the Securities Act of 1933 were time barred by the
three-year statute of repose applicable to such claims. FDIC argued
that the Extender Statute, which extends the limitation period for
the FDIC to assert claims to three years after the FDIC is
appointed as receiver, tolled the time within which it had to
assert its claims. Judge Stanton agreed with the defendants,
holding that under the Supreme Court’s decision in
CTS Corp. v. Waldburger, the FDIC Extender
Statute applied only to statutes of limitation and did not alter
the applicable statute of repose.
Order.
