Louis Bulasky v. Federal Deposit Insurance Corp.

The three appellants, plaintiffs below, were partners in two businesses. One of them was operated under the name “Harvey’s Kitchen” and the other under the name “Bunny’s Waffle Shops.” Under the name “Harvey’s Kitchen,” the partners maintained two bank accounts in the San Francisco National Bank. Under the name “Bunny’s Waffle Shops,” they maintained two additional accounts in the same bank. The bank failed, and on the date of its failure, $16,468.31 was on deposit in the “Harvey’s Kitchen” accounts, and $15,256.37 was the amount deposited in the name of “Bunny’s Waffle Shops.” The partners instituted two separate actions in a California state court, seeking in each to recover $10,000 from the Federal Deposit Insurance Corp., the bank’s Receiver. On petition of the latter, the actions were removed to the District Court. They were thereafter consolidated. The District Court’s jurisdiction was based upon 12 U.S.C. § 1819 and 28 U.S.C. § 1348 .

By its judgment, the District Court held that the appealing partners were entitled to recover the sum of $10,000 and no more. We affirm.

The pertinent statute provides, in part, “in determining the amount due to any depositor there shall be…