Slater v. FDIC as Receiver for First Republic Bank
- James Donato
- 3:23-cv-03703
- U.S. District Court · Northern District of California
- 2
In Slater v. FDIC, Judge Donato found a four-day statutory stay and granted the FDIC a discretionary 45-day stay.
The stay pauses Diane Slater’s employment case against the FDIC as receiver for First Republic Bank for 45 days from August 11, 2023.
What happened
In Slater v. FDIC as Receiver for First Republic Bank, the FDIC asked to pause this employment case after becoming the bank’s receiver. Plaintiff Diane Slater did not oppose the request.
The court said the law entitled the FDIC to request a stay during the 90 days after its appointment, but the stay could last only until that 90-day period ended. Because the FDIC asked on July 26, 2023, after its May 1 appointment, the court found that only four days remained under the statute.
The court nevertheless granted a separate 45-day stay using its case-management discretion, finding that the brief pause would not obviously harm Slater or cause undue delay. Judge Donato issued the order.
The detailed version
- Slater v. FDIC as Receiver for First Republic Bank · No. 3:23-cv-03703
- James Donato
- Aug. 11, 2023
Background
The Federal Deposit Insurance Corporation (FDIC) became receiver for First Republic Bank on May 1, 2023, when the bank faced imminent collapse. An employment case against the bank was already pending. The FDIC requested a statutory stay under 12 U.S.C. § 1821(d)(12)(A), and Diane Slater did not oppose the request.
Statutory stay
The statute allows a receiver to request a stay of a judicial action for up to 90 days after the receiver’s appointment. The court explained that a timely request must be granted. It followed the approach of a Third Circuit decision holding that the FDIC must request the stay within the first 90 days after appointment and that the stay must end no later than 90 days after appointment.
The FDIC was appointed on May 1, 2023, so the 90-day period ended on July 30, 2023. Because the FDIC did not request the stay until July 26, the court concluded that the FDIC was entitled to a four-day statutory stay, not a full 90-day stay.
Disposition
The court granted a 45-day stay from the date of its order under its case-management discretion. It found that this relatively brief stay would not cause obvious prejudice to Slater or otherwise unduly delay resolution of the case. The court noted that the FDIC could request another stay later in connection with its administrative claims process, but that issue was not before the court. Judge James Donato issued the order.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.