MTB Enterprises, Inc. v. ADC Venture 2011-2, LLC

Introduction

This case is about a bank loan gone awry — and where parties can sue to recoup their losses when a financial institution fails. Under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (“FIRREA” or “the Act”), claimants in cases involving failed institutions must file suit either in the district in “which the depository institution’s principal place of business is located or the United States District Court for the District of Columbia (and such court shall have jurisdiction to hear such claim).” 12 U.S.C. § 1821 (d)(6)(A)(ii). The question of first impression in our circuit is whether this procedural provision is jurisdictional or simply a venue requirement subject to waiver. We conclude that this section sets out the subject-matter jurisdiction of the court.

Background

In 2007, as the real estate boom edged toward its pre-recession peak, MTB Enterprises, Inc., entered into a financing arrangement in which ANB Financial agreed to provide it with a $17 million loan and line of credit to develop a real estate parcel called Sundance Ranch in Canyon County, Idaho. A year later, ANB balked on honoring the final $6 million in payouts, and…