By: WISCONSIN LAW JOURNAL STAFF//February 5, 2013//
United States Court of Appeals For the Seventh Circuit
Civil
Administrative Law — exhaustion
Bank borrowers must exhaust their administrative remedies before suing the FDIC.
“The FDIC asserts for the first time on appeal that no court has jurisdiction over this matter due to the borrowers’ failure to exhaust their administrative remedies under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. In response, the Appellants argue that the exhaustion requirement does not apply because they always intended to sue their lender’s successor rather than the FDIC or, in the alternative, because MB Financial assumed its predecessor’s liabilities. Despite the Appellants’ contentions, their claims relate to the lender’s alleged acts and omissions, not the successor’s, and there is no evidence to support their assumption of liability argument. Because the Appellants failed to exhaust their administrative remedies, we direct the district court to dismiss their case for lack of jurisdiction.”
Vacated and Remanded.
Appeal from the United States District Court for the Northern District of Illinois, Hart, J., Williams, J.