Manh v. Federal Deposit Insurance

MEMORANDUM

Charles and Anh Manh appeal the district court’s grant of summary judgment in favor of the Federal Deposit Insurance Corporation (FDIC) on their claim of breach of contract, as well as the district court’s award of contractual attorneys’ fees to the FDIC. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.

The district court did not err in determining that the FDIC repudiated the Manhs’ lease within a “reasonable period” following its appointment as receiver. See 12 U.S.C. § 1821 (e)(2). The FDIC produced undisputed evidence that the acquiring institution closed its branch 154 days after the FDIC was appointed as receiver and that the Manhs were aware of the branch’s closing. The FDIC also produced undisputed evidence that it mailed a notice of repudiation to the Manhs 24 days after the acquiring institution closed its branch. During the intervening 24 days, the FDIC backed up all electronic data on the premises, swept the premises to remove all sensitive information, and completed a multi-level internal review process to decide whether to repudiate the lease. Under these circumstances, and in light of the FDIC’s “broad discretion” to determine what…