Opinion ID: 8704066
Heading Depth: 5
Heading Rank: 2

Heading: Whether BOA Can Pursue the Claims on Behalf of DB and BNP

Text: Having concluded that DB and BNP have Article III standing to bring their claims, the Court now must determine whether BOA has standing to bring the claims on their behalf. The FDIC argues that the Amended Complaint does not allege the basis for BOA’s “derivative standing on behalf of [DB and BNP],” and, therefore, to the extent that BOA seeks recovery on their behalf, the Complaint must be dismissed for lack of subject matter jurisdiction. (See Dkt. No. 26 at 19.). 13 BOA counters that the Ocala Facility Documents, specifically the Indenture Agreement and the Security Agreement, unquestionably give it the right to pursue the claims on behalf of DB and BNP. 14 The Court finds BOA’s position to be correct. Section 3.1 of the Indenture Agreement expressly states that Ocala granted BOA a security interest in all of Ocala’s collateral for the benefit of DB and BNP: Section 3.1 Security Interest, (a) Pursuant to the Security Agreement, in order to secure [Ocala’s] Obligations, [Ocala] has pledged, assigned, conveyed, delivered, transferred and set over to [BOA], for the benefit of the [Secured Parties], and has granted to [BOA] for the benefit of the Secured Parties, a security interest in all of [Ocala’s] right, title and interest in and to all of the Collateral assigned to [BOA] pursuant to the Security Agreement. (See the Indenture Agreement at § 3.1; see also, Security Agreement at § 4.01.). Section 6.02 of the Security Agreement states that in the event of a default by Ocala: [BOA] shall have, with respect to the Assigned Collateral ..., in addition to any other rights and remedies which may be available to it at law or in equity or pursuant to this [Security] Agreement ... all rights and remedies of a secured party under any applicable version of the Uniform Commercial Code ... relating to the Assigned Collateral (Security Agreement at § 6.02, second paragraph.). Section 9.2 of the Indenture Agreement requires that in the event of a default, BOA “shall” exercise the rights and remedies available to it under the Security Agreement. Finally, section 9.10 of the Indenture Agreement authorizes BOA to: file such proofs of claim ... as may be necessary or advisable in order to have the claims of [BOA] allowed in any judicial proceedings relative to [Ocala] ..., its creditors or its property, and shall be entitled and empowered to collect, receive and distribute and money or other property payable or deliverable on any such claim. (Id. at § 6.). These provisions make it clear that BOA has a security interest in the very claims being pursued in this suit. This is sufficient to confer standing on BOA to pursue the present claims on behalf of DB and BNP. See, e.g., Sprint Commc’ns Co. v. APCC Services, Inc., 554 U.S. 269, 285, 128 S.Ct. 2531, 171 L.Ed.2d 424 (2008) (upholding the long tradition of conferring Article III standing on assignees of claims, even if the party seeking recovery must turn it over to another upon collection); W.R. Huff Asset Management Co., LLC v. Deloitte & Touche LLP, 549 F.3d 100, 107 (2d Cir.2008) (the assignment of the right to pursue a claim confers standing).