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U.S. Court of Appeals for the Second Circuit

Case Status

Decided

Docket Number

15-499

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Second Circuit reverses $1.2 billion penalty in FIRREA case

May 23, 2016

The Second Circuit unanimously agreed with the defendant that the evidence was insufficient to establish fraud and concluded “that the trial evidence fails to demonstrate the contemporaneous fraudulent intent necessary to prove a scheme to defraud through contractual promises.” Accordingly, the district court’s $1.2 billion judgment was reversed.

U.S. Chamber files amicus brief

April 29, 2015

In its coalition brief, the U.S. Chamber argued the Second Circuit should reverse a $1.2 billion judgment imposed by the U.S. District Court for the Southern District of New York against Bank of America in a case brought by the Government under the Financial Institutions Repair, Reform, and Enforcement Act of 1989 (“FIRREA”).

The brief argues that the Court should reject the district court’s acceptance of the Government’s broad and novel interpretation of FIRREA and should reverse the district court’s failure to apply ordinary principles of proximate causation in assessing civil penalties under FIRREA.

The U.S. Chamber filed this brief jointly with the Clearing House Association, L.L.C., American Bankers Association, and Financial Services Roundtable.

Seth P. Waxman, Daniel Aguilar, and Sina Kian of Wilmer Cutler Pickering Hale and Dorr LLP served as co-counsel for the amici with the U.S. Chamber Litigation Center.

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