Shuler v. Resolution Trust Corp.’s Empirical Analysis

Citation profile

2 federal appellate · 1 district ·

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 4 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “The original D’Oench case applied only to a secret agreement used as a defense to a suit on a note by FDIC in its corporate capacity. It barred recourse to such side agreements, citing the “direct relation” between “the integrity of ostensible assets” and the solvency of a bank. Here, although the solvency considerations are similar, the fact situation is not. We are presented in this case with an affirmative claim, against FDlQr-Receiver, with no note whose terms are subjected to a secret protocol. Nonetheless, D’Oench is applicable to Bowen’s claims, because the doctrine has evolved to a rule that today is expansive and perhaps startling in its severity. The doctrine extension we describe is considerable, but we believe experience has been a wise teacher. The modern D’Oench rule protects the FDIC, as receiver of a failed bank or as purchaser of its assets, from a borrower who has “ ‘lent himself to a scheme or arrangement’ whereby banking authorities are likely to be misled.” In particular, D’Oench bars the use of unrecorded agreements between the borrower and the bank as the basis for defenses or claims against the FDIC. The agreement need not implicate a specific obligation, such as a note or other asset held by the FDIC. Simply put, transactions not reflected on the bank’s books do not appear on the judicial radar screen either. Accordingly, the Bowens’ suit must fail____”

   1 later decision quote this exact passage · from the majority
   e.g. McCaugherty v. Siffermann