Opinion ID: 744585
Heading Depth: 1
Heading Rank: 1

Heading: introduction

Text: 1 In this case, appellants Motorcity of Jacksonville, Ltd. and David S. Hess (collectively Motorcity) contend that the district court erroneously granted a motion to dismiss in favor of appellee Federal Deposit Insurance Corporation (FDIC) based on the D'Oench doctrine. 1 See D'Oench, Duhme & Co., Inc. v. FDIC, 315 U.S. 447, 62 S.Ct. 676, 86 L.Ed. 956 (1942). A panel of this court vacated the district court's dismissal. See Motorcity of Jacksonville, Ltd. v. Southeast Bank N.A., 39 F.3d 292 (11th Cir.1994). 2 On rehearing en banc, this court affirmed the district court's dismissal, holding that neither the Federal Deposit Insurance Act of 1950, Pub.L. No. 797, 64 Stat. 873, nor the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), Pub.L. No. 101-73, 103 Stat. 183, displaced the federal common law D'Oench doctrine. See Motorcity of Jacksonville, Ltd. v. Southeast Bank N.A., 83 F.3d 1317, 1327-34 (11th Cir.1996) (en banc). 3 At the time of our en banc decision, the D.C. Circuit and the Eighth Circuit had held that FIRREA displaced the D'Oench doctrine. See Murphy v. FDIC, 61 F.3d 34, 40 (D.C.Cir.1995) (holding that FIRREA supplanted the D'Oench doctrine); DiVall Insured Income Fund Ltd. Partnership v. Boatmen's First Nat'l Bank, 69 F.3d 1398, 1402 (8th Cir.1995) (following the D.C. Circuit's holding in Murphy that FIRREA supplanted the D'Oench doctrine). Since the time of our decision, the Fourth Circuit has held that FIRREA does not displace the D'Oench doctrine. See Young v. FDIC, 103 F.3d 1180, 1187 (4th Cir.1997) (following the holding in our en banc Motorcity decision that FIRREA does not abrogate the D'Oench doctrine). There is thus a split in the circuits on this issue. See FDIC v. Houde, 90 F.3d 600, 605 n. 5 (1st Cir.1996) (noting the split in the circuits). 2 The Supreme Court granted certiorari in this case, vacated our judgment, and remanded this case for further consideration in light of Atherton v. FDIC, --- U.S. ----, 117 S.Ct. 666, 136 L.Ed.2d 656 (1997). Hess v. FDIC, --- U.S. ----, 117 S.Ct. 760, 136 L.Ed.2d 708 (1997).