Coit Independence Joint Venture v. Federal Savings and Loan Insurance Corporation, as Receiver of Firstsouth, F. A.

Summary

The Court, in an opinion by Justice O'Connor, held that Congress did not authorize FSLIC as receiver to adjudicate creditors' claims against failed savings and loan associations or deprive courts of jurisdiction to determine those claims de novo. The Court further held that creditors need not exhaust the existing administrative claims procedure because it lacked a reasonable deadline for FSLIC's consideration of claims. Although the Bank Board could require notice and a reasonable waiting period, its regulations exceeded its authority by asserting binding adjudicatory power and permitting indefinite delay. The Court reversed and remanded. Justice Blackmun joined Parts I–III and concurred in the judgment, regarding Part IV as advisory discussion of possible future regulations. Justice Scalia also joined Parts I–III and concurred in the judgment, arguing that FSLIC's procedures could not preempt state-law suits and that the Court lacked a basis to require a regulatory deadline. Neither separate opinion had any noted joiners.