LNV Corp. v. Outsource Services Management, LLC

The Eighth Circuit affirmed the district court's grant of summary judgment in an action filed by LNV against OSM to recover its share of sales proceeds from a promissory note. The court held that the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), 12 U.S.C. 1821, barred the district court from exercising jurisdiction over OSM's counterclaim; post-receivership claims and claims arising after the claims-bar date were subject to exhaustion; OSM's alleged common-law defense for not paying LNV the net proceeds was ineffective because the contract addressed LNV's alleged prior material breach and OSM must comply with the contract; there was no right of setoff and thus BF-Negev breached the Bahia Agreement by withholding LNV's share of collections; and the court declined to exercise its discretion by reversing the district court's attorney fee award. View "LNV Corp. v. Outsource Services Management, LLC" on Justia Law