Whatley v. Resolution Trust Corp – Case Brief Summary (Federal Court)

Whatley v. Resolution Trust Corp - Case Brief Summary (Federal Court)

In Whatley v. Resolution Trust Corp., 32 F.3d 905 (5th Cir. 1994)plaintiff filed a contract and tort suit against a savings institution, Resolution Trust Corporation (RTC) intervened, removed to federal court and stayed the proceedings.

After this stay expired RTC was appointed as receiver and did not request another stay. It initiated the administrative claims process by publishing notice in a newspaper but did not give mail notice to the plaintiffs.

After the time for filing administrative claims had expired RTC filed a motion to dismiss the complaint for failure to exhaust.

The district court dismissed for lack of subject matter jurisdiction. The Court of Appeals held that subject matter jurisdiction is tested as of the time of the filing of the complaint, therefore district courts presiding over actions properly filed prior to the appointment of a receiver continue to be vested with jurisdiction. Whatley, 32 F.3d at 907.

The Fifth Circuit concluded that a separate scheme exists for the disposition of lawsuits filed pre-receivership. Id. at 908.