Opinion ID: 393941
Heading Depth: 1
Heading Rank: 3

Heading: banco nacional's counterclaims

Text: 41 Finally, we turn to Banco Nacional's counterclaims for recovery of its deposits withheld by Boston. The district court dismissed the counterclaims on the ground that Boston had properly applied the funds in Banco Nacional's account to offset Boston's losses from the expropriation of its Cuban assets. We need not reach the merits of this rationale because we conclude that the dismissal of BBI's claims requires the dismissal of Banco Nacional's counterclaims. 42 When a plaintiff sues on a claim as an assignee, the defendant may assert a counterclaim against the assignee based on a right of action against the assignor; the defendant's recovery on such a counterclaim, however, is limited to the amount of the assignee's recovery. Marley v. United States, 423 F.2d 324, 338 (Ct.Cl.1970); Riverside Park Realty Co. v. Federal Deposit Insurance Corp., 465 F.Supp. 305, 316 (M.D.Tenn.1978); First Acceptance Corp. v. Kennedy, 95 F.Supp. 861, 872 (N.D.Iowa 1951). Cf. Restatement (Second) of Judgments § 56, Comment b, Illustration 4 at 62-63 (Tent. Draft No. 1, 1973). 43 In the present case the plaintiff is BBI, assignee of Boston's claims. Banco Nacional's right of action, asserted in its counterclaims, is against Boston, not BBI. Banco Nacional cannot, therefore, recover more on these counterclaims than BBI recovers against it. Since we have held that BBI's claim must be dismissed, Banco Nacional's claims also must be dismissed.