Dime Bancorp Inc (fka DIMEQ)

[linda1]

Here is a commentary on the Appeal Court's Hearing of Judge Block's decision to deny the LTW Holders intervention in the US Court of Federal Claims - dated Oct. 11, 2013.


http://www.law360.com/articles/480147/investors-want-in-on-350m-cfc-litigation-fed-circ-hears


Investors Want In On $350M CFC Litigation, Fed. Circ. Hears

Law360, New York (October 11, 2013, 10:11 PM ET) -- Investors with a stake in a $350 million breach of contract case between a bank owned by JPMorgan Chase Bank NA and the federal government asked a Federal Circuit panel on Friday for permission to join the litigation, saying the Court of Federal Claims had erred in denying their motion to intervene.
The group of investors hold so-called litigation tracking warrants in the case, which arose when Anchor Savings Bank — now controlled by JPMorgan — sought damages from the federal government for new banking regulations in the 1980s that allegedly gutted previous agreements it had made with the U.S. tied to its acquisition of troubled banks.

“We’re here today because the Court of Federal Claims erred when it denied our motion to intervene and it found that the bankruptcy court had already made the decision,” said Paul Allen Traina, an attorney for the investors, which include Compass Point Partners LLC.

Traina said the holders of the warrants are intended beneficiaries of the litigation and therefore want to take a direct part in the litigation.

Judge William C. Bryson asked Traina whether the warrant holders were truly prejudiced by the denial to intervene. He said the investors can still pursue JPMorgan for proper proceeds due under the warrants after the case is disposed of in the Court of Federal Claims.

Judge Bryson added it appeared the investors were outside the scope of the dispute because it's deriving from a specific contract that is not in the litigations.

“Why are they entitled given their interest, which it seems to me is a contract-based interest?” Judge Bryson asked.

Both opposing counsel — John Todor for the U.S. government and Edwin L. Fountain for JPMorgan — said the investors won’t be precluded from pursuing litigation should they find it necessary after the disposition of the case at hand. But the investors are not a party to the current suit and should not be allowed to litigate, they said.

“They’re not a party to this case, so it will not be binding on them,” Fountain told the court.

The appeal arises from the 2008 sale of certain assets of Anchor's successor bank Washington Mutual NA to JPMorgan. The litigation warrants constitute an equity interest granted to the investors during WaMu’s bankruptcy, according to court records.

The case was brought after the passage of the Financial Institutions Reform, Recovery and Enforcement Act of 1989, which Anchor claimed led the government to breach a prior contract with the bank regarding Anchor’s acquisition of troubled lenders in Georgia, New Jersey and Florida in the early 1980s, court records show.

Anchor initially won a $350 million judgment in the case, a decision that was affirmed in part by the Federal Circuit and remanded back to the Court of Federal Claims for a new damages calculations, according to court records.

The investors are represented by Paul A. Traina of Engstrom Lipscomb & Lack.

Anchor Savings Bank is represented by Edwin L. Fountain, Gregory Castanias and Anthony Dick of Jones Day.

The U.S. is represented by government counsel John Jacob Todor.

The case is Anchor Savings Bank v. U.S., case No. 13-5005, in the U.S. Court of Appeals for the Federal Circuit.

--Editing by Chris Yates.