IN TH E U NI TE D S TA TE S D IST RICT CO URT FOR THE DISTRICT OF NEBRASKA

GRA NI TE RE IN SU RAN CE CO MP A N Y , L T D , A Barb ad os Co rp or at io n, Plaintiff,

v . A NN M. F RO H MA

N , D ir ec tor

of Insurance, in her capac ity as Liq ui da to r, FEDERAL CROP INSURANCE CORP ORATION, a Corporation within the United States De partm ent of Agric ulture, and RI SK MAN AG EMENT AG EN CY, an agency of and within the United States D epartm ent of Agric ulture,

D ef en da nts

. )

) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) 8:0 8C V 410

MEMORANDUM AND ORDER

T he pla int if

f, G ranit e Re ins ur an ce Co m pa ny , L td, ( “ G ranit e” ) f

i l ed sui t a ga ins t defendants Federal C rop Insurance Corporation and Risk Managem ent Agency (“ FCIC /RMA” ), and Ann M. Frohm an , Di re ctor of Insurance, in her capac ity as L iqu ida tor

f or a n in sol ve nt i nsur er, A m er ic anG ro w er s I nsur an ce Co m pa ny (“ G ro w er s” ). T he pla int if f’ s c om pla int a lle ges Gro we rs ow es G ranit e fo r unpa id
re ins ur an ce pr em ium s; FC IC /RMA ac ce pte d re spon sib ili ty fo r G ro w er s’ li ab ili tie s, inc lud ing the unp ai d pr em ium de bt o w ed

to G ranit e, in ex ch an ge f or r ec ei vin g G ro w er s’ a sse ts and fun ds; an d FC IC /R MA ha s re fu se d to pa y G ra nit e fo r G ro w er s’ unpai d pre m ium s. T he c om pla int se ek s an or de r re qui ri ng F CI C/ RM A to pa y the Liquidator the am ount Gr ower s owes to Granite, and once that paym ent is m ade, an or de r re qui ri ng the L iqu ida tor to pay the f unds she r ec ei ve d f

ro m F CI C/ RM A to Gran it e. Fil in g No

. 1-2 , at CM /ECF p. 1 2.-2

-

T he c as e w as f

ile d inthe D istri ct

Co urt of L an ca ste r Co unty , N eb ra ska a nd pu rs ua nt t o 28 U

. S. C. § 14 42 , w a s r e m o v e dt o f e d e r a l c o u rtb y

F C I C / R M A

. T he Liquidator and Granite m oved for re m an d , both parties arguing the state court has
ex cl usi ve j ur isd ic tio n over ac tio ns ar isi ng f ro m G ro w er s’ ins olv en cy

a ct ionpur suant to th e Mc Carr an -Fer gu so n Act , 1 5 U

. S

. C

. § 101 1 e t se q. T he c ourt he ld the M cC ar re n -F er g u s o n Ac td i dn o t d i v es t t h e fe d er al co u rt o f ju ri s d i ct i o n o v erGr an i t e’s cl ai m a ga ins t the F CI C/ RM A a nd the c as e w as pr ope rl y r em ove d.

FCIC /RMA has m oved to transfer this case to the United States D istrict Court fo r th e Dis tri ct of Co lu m

bi a. Fi li ng No. 46

. F CI C/ RM A c la im s G ranit e, aBarb ad os Corporation, is not a Ne braska resident and does not engage in business in Nebraska,
an d th er ef

or e the U nit ed

S ta te s D istri ct

Co urt f or the D istri ct

of Co lum bia i s th e pr op er v en ue forth is cas e. 7 U

. S. C. § 15 06( d)

. G ranit e does not opp ose FCIC /R MA’s m ot io n t o t ran sf er. Fi li ng No. 53

.
T he L iqu idator

ha s m ove d to dis m iss G ranit e’ s c as e ag ai nst the L iqu ida tor

f or la ckof s ub

ject m at te r juri sd ic ti on an d fo r fai lu re t o s ta te a cl ai m . Fil in g No

. 47

. A ny cl ai m G ranit e m ay

ha ve ag ai nst the L iqu ida tor is co nti nge nt uponpr ev ai lin g a ga ins t FC IC /R M A

. I f

G r a n i t e f a i l s t o r e c o v e r

a g a i n s tF C I C / R M A , G r a n i t e h a s n o c l a im ag ai nst the L iqu ida tor

. If G ranit e obta ins a j udgm en t aga ins t FC IC /R MA , the a m ount of that j udgm ent m

ust be paid to the Liquidator, and if that occurs, G ranite can seek
reco ve ry fro m th e Liq ui da to r.
A lth ough thi s ca se w as pr ope rl y re m ove d, in t he e ve nt G ranit e pr ev ai ls a ga ins t FC IC /RMA , af

ed er al c ourt c an not

e nte r G rani te ’s r eque ste d j udgm en t a ga ins t the L iqu ida tor

. U nde r N eb ra ska law , the D istri ct Co urt of L an ca ste r Co unty , N eb ra ska is th e s o l e f

o r u m f o r h a n d l i n g t h e a s s e t s o f

t h e G r o w e r s ’ i n s u r a n c e l i q u i d a tio n, (N eb ra ska

I nsur er s S upe rv isi on, Re habil ita tio n and L iqu ida tio n A ct ( “N eb ra ska Rec ei ve rs hi p Act ”),( N e b

. R e v . S t a t

. § 44- 4801 et seq). T his court cannot enter an
or de r fo r dis tr ibu tio n of

a ny F CI C/ RM A j udgm en t pr oc ee ds w ith out int er fe ri ng w ith-3

-

the auth or ity

a nd j ur isd ic tio n of

th e li qui da tio n c ourt i n vi ola tio n of the McC arra n- Ferg us on Act.
By m ovi ng t o dis m iss , the L iqu ida tor ha s advis ed thi s c ourt tha t sh e cl ai m s no int er es t i n th e out co m e of G ranit e’ s li tig atio n aga ins t F CI C/ RM A , a nd s he w ill therefore forego any

right she m ay

have t o re m ai n in thi s litigatio n as an interested
or in te rv en in g pa rty. See e.g ., Fe d. R. Ci v. P

. 24( a) (2 ) & ( b) (2 ) . Th e L i q u i d at o r’s
m otion to dism iss seeks dis m issal und er R ules 12(b)(1) and 12(b)(6) of the Fe deral Ru le s of Ci vil P ro ce dur e. R athe r than di sm iss ing G ranit e’ s c la im a gain st the Liquidator, the court w ill rem and the claim , a long with any argum ents for dism issal for fa ilure to state a claim , to the District Court of Lancaster County , N ebraska. See e.g ., Ri ve ra -C ar

ri on v
. Mi randa529 F. Su pp. 2d 296, 300 (D

. P. R. 200 8) (u phol din g rem oval of plaintiffs’ claim s against on ly the feder al d e f

e nd ants pursuan t to 28 U.S .C. § 14 42, w hil e the c la im s ag ai nst the non- fe de ra l de fe ndants r em ai ne d pe ndi ng i n st at e co urt) ; So m er s v. L ute rb ac h, 2008 W L 1780 936, 1 ( E

. D

. W is. 200 8) (r em an din g st at e cl ai m s to sta te c ourt on ce the c la im s a ga ins t the f ed er al gov er

nm en t, r em ove d to federa l court pursuant to 28 U. S. C. § 144 4, w ere resolved in the federal f orum ).

Purs ua nt t o 7 U

. S. C. § 15 06( d) , a n d w i t h t h e a g r e e m e n t o f F C I C / R M A a nd Gr anite, G ranite’ s claim

against FCIC/RMA will be transferr ed to the United States Dis tri ctCo ur t fo r th e Dis tri ctof C ol um bi a.
A c c o r d i n g l y,
IT IS ORDERED: 1) T he m oti on to dis m iss fi le d by de fe ndant A nn M

. F ro hm an , D ir ec tor of Insurance, in her capacity as L iquid ator for an inso lvent ins urer, Am eri can Growe rs Ins ur an ce Co m pa ny (“ Gro wers ”), (fi li ng no
. 47 ), is de ni ed . Howev er, t he c l a i m by G ran it e Rei ns ur an ce Co m pa ny, L TD again s t the Liquidator is rem anded to the District Court of L ancaster-4

- Co unty , N eb ra ska

. T he Cl er k sh al l m ai l by

c er tif ie d m ai l r et

ur n r ec ei pt re que ste d ac opy

of thi s m em or andu m and or de r to the Cl er k of the D istri ct Co urt of L an ca ste r Co unty , N eb ra ska so tha t th e sta te c ourt i s apprised of the rem and of Gr anite’ s claim against the Liquidator. 2) The m otion to transfer f iled by defendants Fed er al Crop Insurance Co rp or at io n a nd Ris k M an ag em en t Age nc y , (fil in g n o. 46 ), is gr an te d, an d th e cl ai m

by G ranit e Rein su ranc e Co m pa ny , L T D a ga ins t de fe ndants F ed er al Cr op In sur an ce Co rp or at iona nd R isk Mana ge m en t A ge n c y s h a l l b e t r a n s f

e rr e d t o U n i t e d S t a t e s D i s t r i c t C o u rt fo r the District of C olum

bia. 3) The Clerk is directed to transm i t t he f i l e in this action to the United St at es Dis tri ctCo ur t fo r th e Dis tri ctof C ol um bi a. 4) T he re be ing nothin g f urthe r re qui re d of

thi s C ourt i n th is fo ru m , the Cl er k sh al l t er m ina te thi s c as e fo r sta tis tic al pur pose s.

D A T E D thi s 26 day

of O ct obe r, 200 9. rd
BY THE COURT:

Rich ard G. Ko

pf U nit ed S ta te s D istri ct

Jud ge