No. 24-1086

America West Bank Members, LC v. Utah, et al.

Lower Court: Tenth Circuit
Docketed: 2025-04-17
Status: Denied
Type: Paid
Response Waived Experienced Counsel
Tags: asset-seizure civil-procedure due-process fdic-receivership federal-rule-54c state-official-action
Key Terms:
AdministrativeLaw ERISA DueProcess Takings JusticiabilityDoctri
Latest Conference: 2025-06-12
Question Presented (AI Summary)

Whether a court is obligated to afford relief under Federal Rule of Civil Procedure 54(c) when relief was not sufficiently requested, and whether due process rights were violated by a state official's immediate assignment of a bank to FDIC receivership before notifying owners

Question Presented (OCR Extract)

In this case, a state official seized a bank’s assets of $300 million , obtained an ex parte order of possession from a state court for allegedly being undercapitalized , and immediately transferred receivership of the bank to the Federal Deposit Insurance Corpora-tion (FDIC) representative before notifying the bank’s owners so that state remedies available to stop placement in receivership or to return possession for a wrongful seizure w as foreclosed. A lawsuit was initiated against the State over, inter alia, its denial of due process, but the Tenth Circuit held that relief was waived because the complaint sought pre -deprivation, rather than post -deprivation relief, even though the same facts supported the latter. In addition , the Tenth Circuit agreed with the district court that any relief owed now belonged to the FDIC, the actual beneficiary of the due -process violation. The Questions Presented are: 1. Whether a court is obligated to afford relief under Federal Rule of Civil Procedure 54(c) , rather than be deemed waived , because it holds the relief – not the underlying facts – was not sufficiently requested ? 2. Whether Petitioner’s due -process rights were violated by a process that insulated state officials from accountability by permitting immediate assignment to the Federal Deposit Insurance Corporation as the re-ceiver of a bank before even notifying the bank’s own-ers so that the state officials faced no accountability ii and the FDIC as receiver succeeded to any due -process claims that the bank’s owners could have asserted?

Docket Entries

2025-06-16
Petition DENIED.
2025-05-27
DISTRIBUTED for Conference of 6/12/2025.
2025-05-19
Waiver of State of Utah, Utah Department of Financial Institutions, G. Edward Leary of right to respond submitted.
2025-05-19
Waiver of right of respondents State of Utah, Utah Department of Financial Institutions, G. Edward Leary to respond filed.
2025-05-08
Waiver of FDIC of right to respond submitted.
2025-05-08
Waiver of right of respondent FDIC to respond filed.
2025-04-15
Petition for a writ of certiorari filed. (Response due May 19, 2025)
2025-03-12
Application (24A870) granted by Justice Gorsuch extending the time to file until April 15, 2025.
2025-03-07
Application (24A870) to extend the time to file a petition for a writ of certiorari from March 16, 2025 to April 16, 2025, submitted to Justice Gorsuch.

Attorneys

America West Bank Members LC
Robert S. PeckCenter for Constitutional Litigation, PC, Petitioner
Robert S. PeckCenter for Constitutional Litigation, PC, Petitioner
FDIC
D. John SauerSolicitor General, Respondent
D. John SauerSolicitor General, Respondent
State of Utah, Utah Department of Financial Institutions, G. Edward Leary
J. Clifford PetersenUtah Attorney General's Office, Respondent
J. Clifford PetersenUtah Attorney General's Office, Respondent