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Opinion 291

Case Name: 

Peoples Nat'l Bank v. Tracy Bancorp (In re Tracy Bancorp)

Judge: 
Judge Clark
Date: 
Sep-29-1989
Case Number(s): 
86PC-0861
Status: 

UNPUBLISHED

Body: 

The court considered whether claims made by trustee and creditor against a bank purchased by the FDIC were barred by the "estoppel doctrine," established in D'Oench, Duhme & Co. v. FDIC, 315 U.S. 447 (1942), and later codified in 12 U.S.C. § 1823(e). The estoppel doctrine bars makers of facially valid promissory notes from asserting claims, such as fraud, conspiracy, or lack of consideration, premised on the claimant's dealings with a bank later purchased by the FDIC. Concluding that none of the reasons given by the plaintiffs for inapplicability of the doctrine was valid, the court granted the FDIC's motion to dismiss.

Internal Ref: 
Opinion 291
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