Opinion ID: 1267906
Heading Depth: 3
Heading Rank: 6

Heading: Clarification of the Judgment

Text: The judgment of the Court of Federal Claims awards the damages to the plaintiffs. The government argues that the judgment is incorrect, if taken to mean that the damages are to be paid directly to the plaintiff shareholders, because this case proceeded as a derivative action on behalf of Meritor. See Motion to Dismiss Ruling, 35 Fed.Cl. at 183 (stating derivative nature of the suit). The FDIC had repeatedly refused shareholder requests to bring this action on behalf of Meritor, although the FDIC was appointed receiver immediately upon the bank's seizure. The FDIC filed a brief on this appeal as amicus curiae, pressing the position that because of the derivative nature of the suit, the damages award must be paid to the FDIC in its capacity as receiver for Meritor. Cf. First Hartford Corp. Pension Plan & Trust v. United States, 194 F.3d 1279, 1293 (Fed.Cir.1999) (the only claim that can be heard is the corporation's contract claims against the government and the only beneficiary of any relief will similarly be the corporation). The FDIC points out that at post-trial argument in the Court of Federal Claims the court recognized that all parties had agreed that the award would be paid through the receivership. The FDIC also states that although it refused to bring or join in this action, it could have been added as an involuntary necessary party, pursuant to Court of Federal Claims Rule 19(a). See, e.g., Suess v. United States, 535 F.3d 1348, 1357 (Fed.Cir.2008) (noting the trial court's joinder of the FDIC as a party). The FDIC argues that while the wording of the judgment lacks clarity, it can reasonably be construed as ordering that the damages be paid to the Meritor receivership because this action was pursued derivatively on behalf of Meritor. Both Slattery and the government agree that the judgment should be paid to and distributed by the receivership. [9] Slattery Br. 63 (FDIC is correct that any final judgment in this case will be paid by the United States to FDIC-Receiver [for Meritor]); Gov't Reply Br. 56 (Any judgment upon Meritor's derivative claims must be paid to the FDIC-Receiver.). On remand, the Court of Federal Claims may clarify its judgment if needed or appropriate to resolve this aspect. The FDIC also asks this court to order that the judgment be paid from general appropriated funds in the Judgment Fund of the United States, and not from the FDIC's deposit insurance fund. The FDIC points out that 28 U.S.C. ง 2517(a) provides that every final judgment rendered by the United States Court of Federal Claims against the United States shall be paid out of any general appropriation therefore with an exception that is not here applicable. The FDIC states that language in the government's brief might be construed differently. Any difference of opinion within government entities is not the concern of these claimants or this court.