Battista
Battista v. Federal Deposit Insurance
Opinion
Lead Opinion
Tashima, J.
Sandra Kay Battista and other former employees (collectively “Battista” or “employees”) of the Bank of Newport (“Bank”) appeal an order of the district court that permitted the Federal Deposit Insurance Corporation (“FDIC”) to pay a judgment to the employees in receiver’s certificates rather than in cash. The employees also appeal the district court’s refusal to award prejudgment interest. We have jurisdiction under 28 U.S.C. § 1291 , and we affirm.
I.
The Bank, a financial institution insured by the FDIC, had a severance policy that provided severance and separation payments to employees terminated without just cause. In 1994, the California Superintendent of Banks declared the Bank insolvent and the FDIC was appointed its receiver. Pursuant to its authority under the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIR-REA”), the FDIC repudiated the employees’ contracts, including the agreements regarding severance and separation payments. The employees timely filed claims with the FDIC for their severance and separation payments, which the FDIC disallowed.
The employees brought suit against the FDIC seeking damages for their severance and separation pay,…