Bartram
Bartram v. Federal Deposit Ins. Corp.
Opinion
Opinion
Sonenshine, J.
—Is the Federal Deposit Insurance Corporation (FDIC), acting as manager of the Federal Savings and Loan Insurance Corporation (FSLIC) Resolution Trust and receiver for an insolvent savings and loan, protected from a claim of fraud when the debtors have performed their obligations? Relying on D’Oench, Duhme & Co. v. Federal Deposit Ins. Corp. (1942) 315 U.S. 447 [ 86 L.Ed. 956 , 62 S.Ct. 676 ], we conclude that it is.
I.
Harold and Donna Bartram and Joseph and Vita Tessitors (hereafter the Bartrams) engaged a realtor to sell or exchange two of the four parcels of land they owned. On May 31, 1985, the Bartrams and John Molinaro, the chairman of the board of Ramona Savings and Loan, executed a real estate exchange contract. Ramona would receive the Bartrams’ two undeveloped parcels of land valued at $2,279,600 in exchange for 32 condominium units owned by Ramona and valued at $3,410,450. A $1,130,850 note provided the difference in value between the land and the condominiums.
A few weeks later and before escrow closed, the Bartrams were told their parcels had been overvalued and the promissory note had to be increased to $1,730,000. Subsequently, Molinaro explained that…