Vegas Diamond Properties, LLC v. Federal Deposit Insurance
Opinion
Opinion
Piersol, J.
Vegas Diamond Properties, LLC, (Vegas Diamond) and Johnson Investments, LLC, (Johnson Investments) appeal from the district court’s Order granting the Ex Parte Motion to Dissolve Temporary Restraining Order filed by the Federal Deposit Insurance Corporation (FDIC) as receiver for La Jolla Bank. The temporary restraining order, which was issued by a Nevada state court judge, enjoined La Jolla Bank and Action Foreclosure Services, Inc., from proceeding with a trustee’s sale of real properties owned by Vegas Diamond and Johnson Investments. The district court determined that 12 U.S.C. § 1821 (j), the anti-injunction provision of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIR-REA) precluded a court from enjoining the FDIC from conducting a trustee’s sale of the real properties. Since the real properties were sold during the pendency of this appeal, the appeal is dismissed as moot.
BACKGROUND
La Jolla Bank is a federally chartered savings bank. Robert Dyson, an owner of various real estate entities in Southern California and Las Vegas, Nevada, obtained a series of loans from La Jolla Bank. Dyson and an entity controlled by Dyson purchased land…