In Re Motivation Resources, Inc.

Marshack v. Tapager (In Re Motivation Resources, Inc.)

Good Law
1993 WL 337543·158 B.R. 184·1993 Bankr. LEXIS 1271·24 Bankr. Ct. Dec. (CRR) 983
United States Bankruptcy Court, Central District of CaliforniaJuly 23, 1993Bankruptcy No. SA 90-08948 JR, Adv. No. SA 93-1026 JRCalifornia1,539 words

Opinion

Opinion

Ryan, J.

MEMORANDUM OPINION

INTRODUCTION

On May 25, 1993, Defendant, the Federal Deposit Insurance Corporation (the “FDIC”) as receiver for Mission Viejo National Bank, and the Plaintiff, Richard Mar-shack, Chapter 7 trustee for Motivation Resources, Inc. (“Trustee”), appeared before this court on Defendant’s Motion to Dismiss Plaintiff’s Second Amended Complaint. Counsel for the Defendant argued that when the FDIC acts as a receiver for a failed financial institution, it stands in the shoes of that institution; therefore, the FDIC as receiver possesses no immunity and is not a governmental unit as defined by § 106(a) of the Bankruptcy Code (the “Code”). I took this matter under submission to decide specifically whether the FDIC, when acting in its capacity as receiver, is a governmental unit subject to § 106(a).

JURISDICTION

This court has jurisdiction over this adversary proceeding pursuant to 28 U.S.C. § 1334 (a) (1991) (the district courts shall have original and exclusive jurisdiction of all cases under title 11), 28 U.S.C. § 157 (a) (1991) (authorizing the district courts to refer all title 11 cases and proceedings to the bankruptcy judges for the district) and General Order No.…

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