Jackson v. Thweatt

In Jackson v. Thweatt, 883 S.W.2d 171, 174 (Tex. 1994), the Court considered two conflicting court of appeals opinions about whether FIRREA's six-year limitations period applies to the FDIC's successors in interest. 883 S.W.2d at 172-74. In both cases the noteholders' claims had accrued before the FDIC became the receiver of the noteholders. Jackson, 883 S.W.2d at 172-74. The Court recognized that 18 U.S.C. 1821(d)(14) expressly confers the six-year limitations only on actions the FDIC brings. Jackson, 883 S.W.2d at 174. However, based on the common law maxim that "an assignee stands in the shoes of his assignor," the Court held that the FDIC's successors also have the benefit of the FDIC's longer limitations period. Jackson, 883 S.W.2d at 174. Any other holding, we explained, would diminish the note's market value in the hands of the FDIC, thereby hindering the purpose behind the longer limitations period: To hold that assignees are relegated to the state statute of limitations would serve only to shrink the private market for the assets of failed banks. It would require the FDIC to hold onto and prosecute all notes for which the state statute of limitations has expired because such obligations would be worthless to anyone else. This runs contrary to the policy of allowing the FDIC to rid the federal system of failed bank assets. The FDIC can only make full use of the market in discharging its statutory responsibilities if the market purchasers have the same rights to pursue actions against recalcitrant debtors as does the FDIC. Jackson, 883 S.W.2d at 174.