“It’s hard to find a word that captures the essence of the FDIC’s bringing this action. Irresponsible is close. Arbitrary, dishonest, exploitative, extortionate, and abusive all fit.”
Yesterday, the U.S. District Court for the Southern District of Texas issued an amazing 131 page Opinion on Sanctions in which it ordered that the FDIC repay a defendant all of his attorneys fees and then some (over 72 million dollars in all) for ten years of litigation which should never have happened, according to the Court. The suit was brought by the FDIC not for the reasons set out in the Compliant, but to pressure the defendant on an unrelated environmental matter, according to the Court. The FDIC knew there was no legal basis for the claims made over the protracted litigation, according to Judge Hughes, but that the true purpose of the suit was to appease outside interests pursuing the desired result on the unrelated environmental matter.

Here is a link to the Court’s remarkable opinion:

http://www.txs.uscourts.gov/notablecases/hurwitz_opin.pdf

Mike