Replies to post #195656 on Fannie Mae-No Politics (FNMA)

[JJ8]

chessmaster315, interesting question: "Have you considered the possibility or even likeliness of a class action suit, either in addition to, or independent of the current lawsuits?"

That is indeed a question that is original and creative! May be we could resolve/settle many of the big issues and jam in our Gov... through 'class action suits'?;-)

I can't wait to read Obit's response! GLTY

[Bouray00]

I imagine that when the government lawyers pissed off the judge and did not get a stay, that was a major "Oh Shit" moment for a lot of people in the government. Something big has to happen to keep the dirt under the rug. Maybe a settlement? Who knows. I don't think the government wants any skeletons coming out of their closet.

[obiterdictum]

1. Obit, What happens if the government fails to do its part in court ordered discovery?
2. That is, what happens if the government fails to comply with the March 21 deadline?

These are two separate questions answered by the Rules of the Court of Federal Claims (see below). The first concerns the discovery order proper for the collection of depositions, documents, interrogatories, and admissions. The second refers to the submission of the joint discovery schedule/plan on Friday, March 21, 2014.

If the Defendants fail to adhere to the discovery order later on, then a two pronged procedure can be initiated according to Rule 37 (a) and (b) wherein Defendants may be held in contempt of court. The Plaintiffs can file a motion or motions for the Defendants to comply with all aspects of the discovery See Rule 37(a). It there is no compliance, then the court has a variety of sanctions that can be applied to the Defendants according the Judge Sweeney's discretion. See Rule 37(b) for the sanctions.

if the Defendants fail tomorrow to submit with the Plaintiffs a discovery plan, then the Defendants will be sanctioned and may be forced to pay the Plaintiffs' "reasonable expenses, including attorney’s fees, caused by the failure." See Rule 37(f). What actually happens depends of the presiding Judge.

3. Would this be an instance where the government was in default and the court would grant some sort of judgement against the government, similar to what they may do if a company sues someone, that person was served process, but fails to appear?

No, not for one failure and without fully assessing and documenting the Defendants reasons for the failure. I doubt the court would enter a default judgement for such a failure without adequate reason provided since doing that hastily and without good cause will likely allow the ruling to be overturned. In any case, if such a default judgement was to be entered, the court must give sufficient notice for the Defendants to present and act before it is entered. It is not automatic.

4. This seems, frankly, like it is highly likely...the government will default rather than produce documents required by discovery.

The Defendants do not default. They fail and in not defending themselves, a default judgement can be rendered under certain circumstances given pleadings and prima facie evidence.

5. Of course, the government can "settle" and would not have to permit discovery.

Do you mean that the Defendants admit to the court and Plaintiffs that the Plaintiffs pleading are factual in every case and somehow get the Plaintiffs to dismiss the complaint and settle out of court? Why would the Plaintiffs settle and what would be a possible settlement when all has been won? To save time and money going on through trial and judgment and then to appeal after appeal?

6. Final question, Obit. While I understand the Plaintiff does not necessarily represent the interests of the common shareholders, but is it not true that a favorable ruling would affect the commons shareholders?

Yes, and only indirectly.

7. Of course, its still possible, even with an unfavorable ruling, that a new suit be filed by other shareholder(s), and these shareholders may well use this lawsuit, and "cure" any defects that may be brought out.

There are no identifiable "defects" in the Fairholme taking claims lawsuit in the US Court of Federal Claims that can be readily pointed out. What would such defects be in a takings claim lawsuit against the USA?

8. Have you considered the possibility or even likeliness of a class action suit, either in addition to, or independent of the current lawsuits?

There are two class action taking claims laws suit filed that I know of and both are for junior preferred. I do not know of a class action suit for the common shareholders.

The injunctive law suits work best for the common shareholders since they seek to vacate the third amendment to the PSPAs.

It is recommended for those interested in the procedural conduct of the courts cases in the US Court of Federal Clams and the US District Courts to read through the Current Rules of the Court of Federal Claims and the Federal Rules of Civil Procedure (for US District Court). Answers to most of the questions asked can be found there. It is also a good idea to read the complaints. Access to many of the the complaints can be had here - http://www.restorefanniemae.us/resources - and at the links below.

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US Court of Federal Claims - Judge Margaret Sweeney
Fairholme Funds v. United States - 1:13-cv-00465
Filed: July 9, 2013
http://www.fairholmefunds.com/fannie-freddie
http://www.valueplays.net/

FISHER et al v. USA - 1:2013cv00608
Filed: August 26, 2013

SHIPMON v. USA - 1:2013cv00672
Filed: September 12, 2013

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US District Court, District of Columbia - Judge Royce Lamberth (formerly Robert Wilkins)

 
 11/18/2013	1:13-mc-01288	IN RE: FANNIE MAE/FREDDIE MAC SENIOR PREFERRED STOCK PURCHAS...	 
 11/08/2013     1:2013mc01276   DALLAVECCHIA v. FEDERAL HOUSING FINANCE AGENCY 
 9/20/2013      1:2013cv01439   ARROWOOD INDEMNITY COMPANY et al v. FEDERAL NATIONAL MORTGAGE ASSOCIATION et al 
 9/20/2013      1:2013cv01443   BORODKIN et al v. FEDERAL NATIONAL MORTGAGE ASSOCIATION et al 
 9/18/2013	1:13-cv-01421	MARNEU HOLDINGS CO. et al v. FEDERAL HOUSING FINANCE AGENCY ...	 
 8/5/2013	1:13-cv-01208	DENNIS v. FEDERAL HOUSING FINANCE AGENCY et al	 
 8/1/2013	1:13-cv-01184	CANE v. FEDERAL HOUSING FINANCE AGENCY et al	 
 7/30/2013	1:13-cv-01169	AMERICAN EUROPEAN INSURANCE COMPANY v. FEDERAL NATIONAL MORT...	 
 7/29/2013	1:13-cv-01149	CACCIAPELLE et al v. FEDERAL NATIONAL MORTGAGE ASSOCIATION e...	 
 7/16/2013	1:13-cv-01094	LIAO v. LEW et al	 
 7/10/2013	1:13-cv-01053	FAIRHOLME FUNDS, INC. et al v. FEDERAL HOUSING FINANCE AGENC...	 
 7/7/2013	1:13-cv-01025	PERRY CAPITAL LLC v. LEW et al

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US District Court, Southern District of Iowa, Central Division - Judge Robert W. Pratt
Continental Western Insurance Company vs. FHFA, Melvin Watt US Treasury - 4:2014cv00042
Filed: February 5, 2014
https://docs.google.com/viewer?a=v&pid=forums&srcid=MDUxNDQwNjExMTIwMzQzNjc3NDIBMTMzOTU5MDE4MzE5MzUzNDExNjABSGM0eTNDbzlzamdKATQBAXYy

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US District Court, Southern District Florida - Judge Marcia G. Cooke
Samuels et al v. Federal Housing Finance Agency et al - 1:13-cv-22399
Filed: July 8, 2013
http://s3.documentcloud.org/documents/726578/complaint-against-ed-demarco.txt

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Search Cases and Docket Info
http://dockets.justia.com/
http://www.plainsite.org/judges/index.html?id=979 - see cases beginning from 7/7/2013

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Source: Current Rules of the Court of Federal Claims
http://www.uscfc.uscourts.gov/sites/default/files/court_info/20130813_rules/13.08.30%20Final%20Version%20of%20Rules.pdf - See Rule 37

Sources of court rules for the US District Courts

Current Rules of the Court of Federal Claims
http://www.uscfc.uscourts.gov/sites/default/files/court_info/20130813_rules/13.08.30%20Final%20Version%20of%20Rules.pdf - See Rule 37

Rule 37. Failure to Make Disclosures or to Cooperate in Discovery; Sanctions
http://www.law.cornell.edu/rules/frcp/rule_37

Federal Rules of Civil Procedure (FRCP)
http://www.law.cornell.edu/rules/frcp