Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Portfolio Fb-Idaho, LLC, A Delaware Limited v. Federal Deposit Insurance Corporation As Receiver For First Bank of

December 17, 2010

PORTFOLIO FB-IDAHO, LLC, A DELAWARE LIMITED LIABILITY COMPANY, AND ANACONDA INVESTMENTS, LLC, A
DELAWARE LIMITED LIABILITY COMPANY,
ON STILWYN INC.'S MOTION TO INTERVENE PLAINTIFFS/COUNTERDEFENDANTS,
v.
FEDERAL DEPOSIT INSURANCE CORPORATION AS RECEIVER FOR FIRST BANK OF IDAHO, DEFENDANT/COUNTERCLAIMANT.



The opinion of the court was delivered by: Honorable B. Lynn Winmill Chief U. S. District Judge

MEMORANDUM DECISION AND ORDER

INTRODUCTION

The Court has before it Stilwyn, Inc.'s Motion to Intervene (Dkt. 23). Having reviewed all submitted memoranda, the Court now issues the following Memorandum Decision and Order.

BACKGROUND

The underlying case involves an action for declaratory judgment seeking determination of ownership rights of a fifty-eight percent interest in a nine and a half million dollar loan made to Stilwyn, Inc., an Idaho corporation, by First Bank of Idaho (FBI) in 2007. Compl. ¶ V. The Stilwyn loan, obtained for construction purposes, was secured by a deed on homes and real property located in the Weyyakin Ranch Subdivision in Sun Valley, Idaho. Smelick Aff. ¶ 4. Stilwyn also has the development rights to the real property in the Weyyakin Ranch Subdivision. Id. ¶ 2.

In May 2007, a forty-two percent participation interest in the loan was sold to the Farmer's National Bank of Buhl, Idaho. Smelick Aff. ¶ 4. Defendant FDIC was appointed as receiver for FBI in April 2009. Id. ¶ 6. Stilwyn continued to make payments on the loan until it learned that the FDIC would place the loan into a "bank-only" auction to take place in September 2009. Id. ¶ 9.

Plaintiffs Portfolio FB-Idaho, LLC and Anaconda Investments, LLC allegedly acquired the rights to the loan interest from Idaho First Bank (IFB), the highest bidder at the FDIC auction. Compl. ¶ IX-X. FDIC allegedly did not close on the assignment and sale of the loan to IFB. Smelick Aff. ¶ 17. Plaintiffs brought suit for judicial determination of their rights in the Stilwyn loan in July of 2010. Compl. ¶ XII.

Stilwyn now moves to intervene as a Defendant in the case.

LEGAL STANDARD

The Federal Rules of Civil Procedure set forth two types of intervention: 1) as a matter of right and 2) permissive intervention. See Fed. R. Civ. P. 24(a)(2), 24(b).

To intervene as of right under Rule 24(a)(2), the proposed intervenor must demonstrate that "(1) it has a significant protectable interest relating to the property or transaction that is the subject of the action; (2) the disposition of the action may, as a practical matter, impair or impede the applicant's ability to protect its interest; (3) the application is timely; and (4) the existing parties may not adequately represent the applicant's interest." United States v. City of Los Angeles, 288 F.3d 391, 397 (9th Cir. 2002). The party seeking to intervene bears the burden of showing that all the requirements for intervention have been met. Id.; see also Perry v. Proposition 8 Official Proponents, 587 F.3d 947, 950 (9th Cir. 2009) ("failure to satisfy any one of the requirements is fatal to the application"). In determining whether intervention is appropriate, courts are guided primarily by practical and equitable concerns, and the requirements for intervention are broadly interpreted in favor of intervention. City of Los Angeles, 288 F.3d at 397.

A proposed intervenor who seeks permissive intervention pursuant to Rule 24(b)(2) must prove that it meets three threshold requirements: (1) it shares a common question of law or fact with the main action; (2) its motion is timely; and (3) the court has an independent basis for jurisdiction over the applicant's claims. Donnelly v. Glickman, 159 F.3d 405, 412 (9th Cir. 1998). The court must also consider whether "intervention will unduly delay the main action or will unfairly prejudice the existing parties." Id.; see Fed. R. Civ. P. 24(b)(3).

ANALYSIS

1. Intervention as of Right Stilwyn seeks to intervene as a matter of right ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.