Just Kidding! Federal Court's Disposition of FDIC's Bad Faith Claims.

   In FDIC v. Safeco Insurance Co. of Am., 2011 WL 4753416 *2 (D. Nev. October 7, 2011) Download FDIC, as Receiver for Netbank v. Safeco Ins. Co. of Am. (D. Nev. Case No. 2.02CV10151, Order for Bench Trial on Reformation on 11.28.11) PUBLIC ACCESS, a Federal Judge in Nevada was faced with a case of Multi-District Litigation which was transferred to his Court from the Northern District of Ohio.  The Nevada Federal Judge held that the FDIC could sue for Insurance Bad Faith if the Insurance Contract was reformed after a bench trial to include the FDIC as a third-party beneficiary capable of enforcing the contract.  The Federal Judge called the FDIC's Insurance Bad Faith Claims "claims handling" and "other" claims besides the FDIC's breach of contract claim. 

   Five days later, the Federal Judge was ready to announce that his mind was made up in that case.  Without issuing any detectable rulings on Reformation, let alone without a bench trial in the meantime, the Court granted the Insurance Company's Motion for Summary Judgment on all of FDIC's Insurance Bad Faith Claims.  The Court explained something that it did not mention (and probably did not have any need to mention) in its earlier decision, which was that the Federal Deposit Insurance Corporation alleged its Bad Faith Claims both under a Georgia Statute, and as a separate Breach of Good Faith and Fair Dealing claim.  Either way, the Nevada Federal Judge granted the Insurance Company's Motion for Summary Judgment on the FDIC's Bad Faith Claims.  FDIC v. Safeco Insurance Co. of Am., 2011 WL 4834305 *2-*4 (D. Nev. October 12, 2011) Download FDIC, as Receiver for Netbank v. Safeco Ins. Co. of Am. (D. Nev. Case No. 2.02CV10151, Order on Summary Judgment Motion entered on 10.12.11) PUBLIC ACCESS.

   Whew.  There is an old saying among appellate lawyers who seek a reversal from an appellate court which seems to apply here even if the rulings in question came from a Federal Trial Court:  "Don't let the PCA ["Per Curiam.  Affirmed."] beat you back to the office." 

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